Can you get finance if you've filed for Bankruptcy?
Yes. Whether your in the process of becoming Bankrupt or If you are a discharged bankrupt or you've had a Part 9 or 10 debt agreement, you can still get finance
Bankruptcy is listed as a major default on your credit report and the record is kept for at least five to seven years. But depending on your new circumstances and financial position, some specialist lenders may be willing to offer finance.
Having a equity in a property, a large deposit and steady income are all good signs to the lenders.
A default on your credit file does not always stop you from getting the finance you need. In these situations, we can assist you in building a strong case for your loan application and provide a customised finance suitable for you.
Buying a home after bankruptcy
Filing for bankruptcy doesn’t mean you have to put an end to your dream of home ownership. Rather than waiting 7 years for a home loan, there a now a range of specialist lenders who are willing to offer home loans to discharged bankrupts.
Whether you have a bad credit history, irregular income sources, unpaid defaults, or current rental or mortgage arrears, we can still consider your individual circumstances and find a loan solution that is right for you.
Ways to get back on track after bankruptcy
- Maintain a steady income: Steady employment and saving a portion of your take-home pay from each pay check demonstrates financial responsibility, and will present a stronger case for your application for finance.
- Save a sizeable deposit / Equity in Your Property:If you're looking to refinance or buy a new property you'll need at least a 25% deposit or a 25% equity in any existing properties you may own. The larger the deposit, the better your chances of getting the loan approved.
- Pay your rent and utility bills on time:Maintaining consistent and timely payments of your rent and utilities will be seen as a good sign by the lenders, and they will be more inclined to approve your loan application.
- Don’t apply for credit too often: Each time you are knocked back on a loan application, it is recorded on your credit file and can impact your ability to borrow in the future. Before applying for a mortgage, make sure you can demonstrate you are in a stable financial position and have the ability to pay back the home loan.
If you want to know more about bankruptcy assistance and gain better control over your finances, contact us or fill in our Free Assessment Form.
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