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.