Discharged Bankrupt Mortgage – The Facts About Lender Approval

What is discharged bankruptcy?

A discharged bankruptcy comes about after the initial declaration of bankruptcy. The courts have successfully declared bankruptcy and the creditors and the official receivers have had time to go through all your financial affairs, and have allowed all the necessary charges of the bankruptcy to be met. Only then can you get a discharged bankrupt mortgage - but this does not mean you will be able to instantly take out a discharged bankrupt mortgage – the courts can block your discharged status if you have been bankrupt before, or there are criminal proceedings involved in the bankruptcy.

It is only after you have been discharged that you can become eligible for a discharged bankrupt mortgage. But a person who is a discharged bankrupt is not quite out of the woods - debts will still need to be met, and your credit rating will be rock bottom - but with a discharged bankrupt mortgage there is light at the end of the tunnel.

Is it easy to get a discharged bankrupt mortgage?

Honestly, it is not an easy option. A discharged bankrupt mortgage is not a regular loan, and cannot be got at your local high street bank. If you have thought long and hard and you are sure a discharged bankrupt mortgage is really the answer to your prayers, then talk to your adviser. An adviser is critical in not only determining whether you could benefit from a discharged bankrupt loan, but also in helping you find the specialised heavy subprime lenders who deal with such a case.

When will I be discharged?

A discharge usually comes about after 12 months into the bankruptcy. But this isn’t the end of the matter – you have to bear in mind that a bankruptcy is a serious issue that will give you a financial crutch for a long time to come - up to six years – so a discharged bankrupt mortgage could be a lifesaver that will keep your head above water while the creditors still circle after that first year.

How does a discharged bankrupt mortgage compare to a normal mortgage?

A discharged bankrupt mortgage is a very heavy subprime mortgage, and if you are eligible for one you will still be a high-risk borrower, so rates are going to be anything but competitive. But a discharged bankrupt mortgage is better than no mortgage, and it is the perfect way to start repairing your credit and getting your life back in the right direction.

Essentially, to be a good candidate for a discharged bankrupt mortgage, make sure you are clued up. Do your homework, talk to an adviser and have all your finances in order. Have sensible goals that will show a discharged bankrupt mortgage lender that you are serious about getting back on track and leaving your bankruptcy woes behind you.

Adverse Mortgage Centre

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