Simply, it is very difficult to get a bankruptcy re mortgage now. Lenders have lost so much money over the last six months that they will not take on risk – and those who have been recently bankrupt are the riskiest borrowers of all. They need some collateral and they need some solid proof that the mortgage is going to be met each month. This means mortgage lenders are looking for a good percentage of the home as a down payment and a clean credit rating. But this is a re mortgage, so it is still possible to find some bankruptcy re mortgage deals on the market but it is not going to be easy to get hold of and it will not be cheap.
To be the best borrower possible in the eyes of the lenders you need to have what the lenders are looking for – a clean credit rating. Now after bankruptcy that’s impossible, but it is possible to start to rebuild it pretty quickly. If you are going to start to search for a bankruptcy re mortgage, go online and check your rating using one of the UK’s rating agencies. From there you can see exactly what state your finances are in – it will document all your financial responsibilities to date. But it will also allow you to fight your corner for a bankruptcy re mortgage, righting any wrongs that might be on there and documenting all the good work you have begun to do after your bankruptcy.
Start saving, stop spending and have a plan of action. This is what a lender will be looking for if there is any chance of getting your hands on a bankruptcy re mortgage. And it’s vital to make the ‘start saving stop spending’ mantra central to your life, or you will lose your home. Make sure you have a regular income, make sure you have minimised all your financial responsibilities and know how you are going to meet any debt, like a bankruptcy re mortgage, in the future.
Even after you have begun work on trying to improve your chances of getting a bankruptcy re mortgage, you will still need to talk to a mortgage adviser. A mortgage adviser can search the whole of the mortgage market, including the highly specialised lenders that are unavailable to consumers. This will include highly specialised sub prime lenders of bankruptcy re mortgage deals – so a mortgage adviser could well be your key to that bankruptcy re mortgage that will save your home and help you into the black.