Our agents are on hand to speak to you 7 days a week.
GET IN TOUCH WITH US NOW!     01425 600129     enquiries@bankruptcy.co.uk
Mortgage Brokers Archives - Bankruptcy UK

OUR TEAM ARE AVAILABLE NOW TO HELP WITH COMPLEX INSOLVENCY ISSUES

 

Will my credit rating ever recover if I go bankrupt?

Yes it will and faster than you think, as Mortgage Brokers have confirmed that it is now possible to arrange mortgages for discharged bankrupts within three years, provided there has been no trouble in the interim.

We guide a lot of people through bankruptcy and have heard of many cases where people are buying furniture on finance just 18 months after discharge, so there’s plenty of hope. To aid recovery, it’s important that you apply for one or two of the ‘credit repair’ credit cards (Capital One, Vanquis, Aqua, etc.) as soon as you are discharged and make regular small purchases and payments in full.

The reason for this is that payments record as a ‘O’ on your credit file i.e. a successful payment and a string of zeroes next to any financial transaction racks up the points on your credit score. Likewise, internet providers such as Virginmedia and BT also have contracts in place which record zeroes for successful payments.

People think that banks will never take a chance on former bankrupts, but we beg to differ. Former bankrupts are completely debt free and are the customers of the future, something the banks are readily embracing.

‘Will my credit rating ever recover if I go bankrupt?’ is just one of the dozens of questions we answer every week here at Bankruptcy UK, but we’ll gladly talk to you in person if you call us on 01425 600125.  We look forward to talking to you.

Bankrupts can now get Mortgages provided …

It seems the bad times are finally behind us, as lenders are now offering mortgages for those with poor credit histories, including former bankrupts. Yorkshire, Chelsea and the West Brom will allow up to 65% loan to value (LTV), while plenty of other banks and building societies will do 60% LTV. Chelsea even has a 75% LTV option for some poor credit borrowers, but we were unable to confirm whether this included former bankrupts.

Mortgage Brokers are telling us that the rule of thumb for former bankrupts is three years of clean credit, but warn that banks are asking hard questions about affordability. Unlike the formulas of years gone by, where it was simply a case of 4 x joint income, banks are now grilling people to find out exactly what their outgoings are and how much it is costing them on a monthly basis. It might sound like hard work, but at least banks are finally taking responsibility, unlike the pre-recession days when anybody with a heartbeat could get a mortgage.

Bankruptcy UK offers a full bankruptcy administration service and will submit your bankruptcy application online. Court appearances are no longer required for bankruptcy. Call us for bankruptcy help on 01425 600129 or for an informal chat about your circumstances.

Pay Day Loans the ‘Kiss of Death’ for Mortgage Applications

Mortgage Brokers have reported that in the past 12 months 85% of mortgage applications involving previous Pay Day Loans, were rejected outright. And of the 85%, a staggering 57% had otherwise perfect credit histories.

Prior to 2012, it was impossible to distinguish between Pay Day Loans and other credit applications, but both Experian and Equifax now list these separately. Unlike other sources of credit which might actually aid a mortgage application, High Street lenders view Pay Day Loans as a financial cry for help and react accordingly. The message is simple: avoid Pay Day Loans at all costs, as even a satisfied one is the ‘Kiss of Death’ in the financial world.

Mortgage Brokers are not saying it is impossible to get a mortgage with a recent Pay Day Loan application on your credit file, but that they would have to ‘shop around’ for a willing lender and that the applicant would almost certainly end up paying a higher rate.

Bankruptcy UK offers a full bankruptcy administration service and will submit your bankruptcy application online. Court appearances are no longer required for bankruptcy. Call us for bankruptcy help on 01425 600129 or for an informal chat about your circumstances.

 

 

Bankruptcy UK

Bankruptcy UK