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Discharged bankrupt mortgages
The Enterprise Act 2002 received Royal Assent on 7 November 2002. It follows
the government’s White paper, Productivity and Enterprise, Insolvency-A Second
Chance, that was published on 31 July 2001 and proposed major changes to both
personal and corporate insolvency.
One of the objectives of the personal insolvency reforms was to distinguish
between “ innocent” and culpable bankrupts” and to reduce the stigma of
bankruptcy in the case of the first category.
Innocent bankrupts, could be defined as, “
those that might have stayed solvent with just a bit more backing from the bank,
or “ just a few more sales” etc.
The discharge period for the first category has been reduced to 12 months
(conditions apply), however the bankruptcy information remains on a credit file
for six years from the date of the order.
As soon as you are discharged from bankruptcy you are free to apply for
borrowing facilities, including
mortgages,
again. Unfortunately, most high street lenders continue to treat you as a
bankrupt and will decline to offer any kind of
mortgage finance.
As far as we are concerned being a discharged bankrupt should not prevent you
from acquiring a new mortgage. Forward thinking lenders operate a policy that
could afford you that “second chance”.
As a Mortgage Broker, specialising in the more
demanding area of the Mortgage Market, we have access to lenders that have a
“can do” approach to lending. We also understand the bankruptcy and insolvency
proceedings including IVA and Fast
Track Voluntary Arrangements (FTVA). We can advise with some knowledge on
Discharged bankrupt mortgages or mortgages for discharged bankrupts.
Many of the high street lenders use computers that assess your application
against statistical data- with no discretion. You either “ fit the box” or you
don’t! The discharged bankrupt, does not fit a box, and the application would
normally fail at the first hurdle.
Specialist lenders have a very different approach. They employ real people to assess an application for lending, real people who look for reasons to lend, rather than reasons not to lend, real people with discretion to consider each application of individual basis.
If you would like help with your mortgage from a qualified
mortgage broker
who specialises in advising discharged bankrupts please
contact us on 0800 316 5756
The overall cost for comparison is 7.9% APR The actual rate available will depend upon your circumstances. Ask for a personalised illustration.