Mortgage after Bankruptcy - hints and tips

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It is possible to obtain a mortgage after bankruptcy, but the process will take longer than it would to obtain a standard mortgage from a high street lender. This is because you will have to find a lender that specialises in high risk lending, and who is willing to accept your application for finance.

Most lenders, including high risk lenders, will require you to wait for around 2 years following your bankruptcy discharge date before considering your application. In some cases you may be able to apply after 18 months, in others it may take 2.5 years - these time frames are totally dependent on the lenders application criteria, which is why it is always good to approach more than one lender when looking for your mortgage.

The first thing is to find yourself a few lenders that specialise in bad credit lending, and ask them for their application criteria, this way you can find out which ones will at least consider your application before you start filling out hundreds of forms. General guidelines are that most high risk lenders will require to see things such as proof of stable employment, proof of substantial savings and also vetting of your credit report. These are actually things that most high street lenders will ask to see, but they will be looked at from a different angle by a bad credit lender, as they realise you are coming out of bankruptcy and therefore are not likely to meet standard lending criteria.

You may find that you are having difficulties finding lenders that are willing to offer you finance, and if this is the case, and you feel you are wasting your time, then you might want to consider approaching a mortgage broker. Once again you will need to find a broker that specialises in mortgages after bankruptcy as they will have the necessary resources and contacts to be able to help you in your quest to secure financing, and will not approach mainstream lenders with your application, meaning that no unessecary credit checks will be lodge on your report. The benefits of going through a broker to help you getting a mortgage after bankruptcy are quite substantial as all you really need to do is find a broker you are comfortable with, and go through your individual circumstances with them. They will pull together a client file on you with all the information they need, and will go through their database of lenders that they use to find some that will be willing to consider your application. Then with your permission, they will go ahead an submit your application to the lenders they feel most likely to accept your application and of course that are offering a good deal.

Brokers can take a lot of the stress and pressure out of finding your mortgage as they are working with established contacts that they use on a regular basis to secure high-risk financing. There are fees associated with using a broker, but for most people the benefits of using a broker to find their mortgage after bankruptcy far outweigh the cost.