If you are looking to apply for a mortgage after bankruptcy, it is vital to understand that it will take time and patience. The majority of lenders will expect you to wait at least 2 years after the date of your bankruptcy discharge before applying for a mortgage, although in some cases you might be able to apply after just 18 months.
In order to obtain a mortgage following bankruptcy, you will have to find lenders that specialize in bad credit lending, all of which will have different lending criteria. Amongst these criteria will be things such as proof of employment, and that you have been in employment for a certain period of time. Most lenders will also want to see your full credit report, as this will show steps that you have taken to rebuild your credit rating since your bankruptcy. You will more than likely also need to show proof that you have a large cash deposit to put down, as this is something that nearly all bad credit lenders look for as it is taken as an indication from you that you are serious about keeping up with your repayments.
The more you have invested in a property, the more you stand to loose if you default on your bankruptcy mortgage , which offers the lender additional security. There will be other criteria that will be specific to the lender you decide to go with, and these are something you will have to discuss with the lender in more detail when you are discussing the finance package they are willing to offer you.
If you find you are unable to meet all the criteria set by lenders, then you are going to have to work on whichever areas you are falling short on in order to be considered. This is not necessarily a bad thing as it gives you the opportunity to save up a larger deposit, meaning you will have to borrow less overall. It also means that you may well be in a position to approach a high street lender for your mortgage after bankruptcy, which is a much better option altogether.
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