When a person becomes bankrupt their credit rating is seriously affected. A history of bankruptcy can be a major obstacle when trying to get a mortgage because previous bankrupts are regarded as a higher risk than other borrowers.

In recent years there has been a noticeable trend in the rise of the number of young people declaring bankruptcy. Official figures from the Insolvency Service reveal the proportion of bankrupts aged between 18 and 29, has rocketed from just under 8% in 2001 to nearly 19% in 2005 with around 1,000 graduates in the UK forced to declare themselves bankrupt. 

For many it has become less of a stigma, it provides a way to legally declare an inability to pay creditors and enables an individual to free themselves from excessive debts. 

As soon as you are discharged from bankruptcy you are free to apply for borrowing facilities again, including mortgages. The Enterprise Act which was introduced on 1 April 2004, reduced the discharge period from three years to 12 months. However the bankruptcy information remains on a credit file for six years from the date of the order and most high street lenders will continue to treat you as a bankrupt and will decline to offer any kind of finance. 

Fortunately some specialist lenders recognise that a history of bankruptcy is not necessarily an indication of a borrower’s ability to repay their mortgage and there are a number of products available.

As a specialist broker we have expertise in helping discharged bankrupts secure mortgage finance. Our extensive experience in this area means we can negotiate competitive deals for our clients. 

Whatever your credit history, simply complete our quick no obligation enquiry form and we'll get back to you with what your options are.