Discharged bankrupts aren’t discounted by these specialist lenders
Getting a mortgage when you have been bankrupt in the past is challenging. With most lenders, you will need to have been discharged from bankruptcy for at least 12 months to be considered. Even then, it can be difficult to find a lender willing to entertain your application. Lending criteria is often pretty tight for discharged bankruptcy.
The sooner you want a mortgage after being discharged from bankruptcy, the higher the deposit you are likely to need. The longer you leave it, the better the terms and conditions become. The key to getting a mortgage when you are a discharged bankrupt is to know which lenders to approach. That’s why we’ve put together this list of the top four mortgage lenders for borrowers who have been bankrupt in the past.
1. Bluestone Mortgages
Bluestone Mortgages incorporated in the UK in 2009. It will lend to bankrupts who have been discharged for three years or longer, and they will discount up to four missed mortgage payments. Bluestone requires a life event to be the cause of your IVA.
Bluestone could lend up to 85% of loan-to-value, and are fast to make lending decisions. Their interest rates are particularly competitive if you have a deposit of 40% or more.
2. Magellan Homeloans
Magellan is one of the largest specialist lenders in the bad credit market in the UK.
They assess without reference to credit scores, instead wanting to understand the reasons behind your past financial difficulties and to see that your financial management has improved. They are particularly interested in applicants where the reason for bankruptcy is a life event, such as redundancy or severe illness.
Providing you have been discharged from bankruptcy for 12 months, an application to Magellan Homeloans provides you with a wide choice of mortgage products and no early repayment penalties.
3. MBS Lending Ltd.
MBS Lending uses a paper-based application process, so their decision-making can be slower than other specialised lenders. However, decisions are made by experienced underwriting staff, and they will lend to borrowers who have been discharged from bankruptcy for more than 12 months.
They do require you to pay a non-refundable application fee, and the minimum loan-to-value is 60%. However, they are backed by the Melton Mowbray Building Society, founded in 1875 and one of the oldest in the UK. That’s a lot of peace of mind.
4. Aldermore Bank
If your bankruptcy has been discharged for a minimum of two years and you have a clean payments history for the last two years, Aldermore offer some fantastic mortgage products.
Their rates are highly competitive, and their mortgage fees are among the lowest in the specialised market.
When it comes to assessing you for a mortgage, Aldermore’s criteria is flexible. They don’t need a life event to be the reason for your bankruptcy, and the higher the deposit you can pay, the more flexible their lending criteria becomes.
These aren’t the only lenders available to ex-bankrupts who want a mortgage, but they are what we currently consider to be the top specialist lenders for discharged bankrupts. They also serve to show that whatever the reason for your bankruptcy, and however recent your discharge, you might be able to get a mortgage. All you need to do is contact Mortgage Thoughts today, and let us help you with the best advice and widest access to the mortgage products you need.