Mortgages & remortgages for discharged bankrupts

Individuals who are currently bankrupt will not be able to obtain a mortgage by law. However if you're a discharged bankrupt you are able to apply for a mortgage but will inevitably experience problems being accepted by the majority of high street lenders as they will consider you an unacceptable risk.

Fortunately there are an increasing number of specialist lenders who are sympathetic to individuals previously bankrupt. Providing you have a reasonable deposit at your disposal, getting a mortgage should not be a problem.

Declaring yourself bankrupt is one way of dealing with debts you can no longer manage. An individual is described as being bankrupt when they are relieved from paying all debts once their assets have been surrendered to an appointed third party. Bankruptcy proceedings are managed via the court system, with the appointed third party designated by the court in charge of the proceedings.

You will be discharged from bankruptcy after three years. If your debts were less than £20,000 and you submitted the bankruptcy order yourself you will usually be discharged after two years. However, if you manage to pay all your debts in full plus the expenses of the bankruptcy order, then the court will annul the bankruptcy. 

From April 2004, changes to bankruptcy laws will make it easier for people to declare themselves bankrupt, by reducing the time it takes to discharge bankruptcy from a period of three years to one year or less.  This change is intended to help people get back on their feet again. 

Best mortgage deals for discharged bankrupts

As independent mortgage advisors we have arrangements with a number of lenders who will offer a mortgage to a  discharged bankrupt. 

We'll identify the most appropriate mortgage lenders and products that provide the best deal for your individual situation.

Simply complete our no obligation enquiry form and one of our expert mortgage advisers will get back to you with the options currently available.