Can You Get a Second Mortgage After Bankruptcy?
Representative example: If you borrow £34,000 over 15 years at a rate of 8.26% variable, you will pay 180 instalments of £370.70 per month and a total amount payable of £66,726.00. This includes the net loan, interest of £28,531.00, a broker fee of £3,400 and a lender fee of £795. The overall cost for comparison is 10.8% APRC variable. Typical 10.8% APRC variable
Representative example: If you borrow £34,000 over 15 years at a rate of 8.26% variable, you will pay 180 instalments of £370.70 per month and a total amount payable of £66,726.00. This includes the net loan, interest of £28,531.00, a broker fee of £3,400 and a lender fee of £795. The overall cost for comparison is 10.8% APRC variable. Typical 10.8% APRC variable
Can you get a second mortgage after bankruptcy?
This question is frequently asked on the internet by UK residents. Some people ask it from the perspective of getting a second first charge mortgage – i.e. a second mortgage to buy another property – whereas others ask if referring to a second charge mortgage to borrow more against their current property.
Get answers to either scenario in our second mortgage and bankruptcy guide, right here!
Can I get a mortgage after bankruptcy?
It is possible to get a mortgage after you have been declared bankrupt but you will need to wait until you have been discharged from your bankruptcy first. The longer time passes after being discharged the greater chance you have of being approved for a mortgage. If you apply straight after being discharged, it’s near impossible but not impossible to get approval.
This applies to all types of mortgages, including residential mortgages and buy-to-let mortgages used for rental investments.
Can you get another mortgage after bankruptcy?
It’s also possible to get a second mortgage after bankruptcy. You might have lost your previous home as part of the bankruptcy process and therefore the same guidelines and information apply, as discussed above.
If you decide to apply for a second mortgage after bankruptcy, it is highly recommended that you engage with a mortgage advisor that is a specialist at securing mortgages for people with adverse credit. These professionals will know which lenders are more likely to accept people who have been made bankrupt in the past.
Lender |
APRC |
Monthly payment |
Total amount repayable |
|---|---|---|---|
| United Trust Bank Ltd | 6.34% |
£219.34 |
£26,320.83 |
| Pepper Money | 6.86% |
£220.24 |
£26,429.17 |
| Together | 7.99% |
£222.20 |
£26,664.58 |
| Selina | 8.45% |
£223.00 |
£26,760.42 |
| Equifinance | 9.95% |
£225.61 |
£27,072.92 |
| Evolution | 10.2% |
£226.04 |
£27,125.00 |
| Spring | 10.5% |
£226.56 |
£27,187.50 |
| Loan Logics | 11.2% |
£227.78 |
£27,333.33 |
Representative example: If you borrow £34,000 over 15 years at a rate of 8.26% variable, you will pay 180 instalments of £370.70 per month and a total amount payable of £66,726.00. This includes the net loan, interest of £28,531.00, a broker fee of £3,400 and a lender fee of £795. The overall cost for comparison is 10.8% APRC variable. Typical 10.8% APRC variable.
Search powered by our partners at LoansWarehouse.
Can you get a second charge mortgage after bankruptcy?
It’s possible to get a second mortgage after bankruptcy and it’s also possible to get a second charge mortgage after bankruptcy. To get a second charge mortgage you’ll need a new home with a new mortgage and adequate equity in your home to secure the second charge.
To have these things already, you’ll need to have been discharged from your bankruptcy a while ago and be on track with your new mortgage repayments. Thus, it is possible to get a second charge mortgage after bankruptcy, but it will only become an option after many years of handling your new mortgage payments effectively.
» TAKE ACTION NOW: Compare deals from the UK’s leading lenders
How much deposit will I need for a mortgage after bankruptcy?
As the chances of being approved increases as time passes from the date you were discharged from your bankruptcy, the amount of deposit required to get approved also decreases. For example, if you want to get a mortgage after bankruptcy within a year of your discharge date, you’ll probably need around 40% of the property price as a deposit. Waiting two years after your bankruptcy discharge date can half the amount of deposit required on a property to 20%.
These figures are estimates only based on market research from professional mortgage advisors in the UK.
Second charge mortgage for all purposes
- Stuck paying high interest on credit card debts & loans?
- Looking to fund a home improvement project?
- Dreaming of finally taking the once-in-a-lifetime trip?
Polly
“This was by far possibly one of the nicest experiences I’ve had getting a secured loan.”
Reviews shown are for Loans Warehouse. Search powered by Loans Warehouse.
What interest rate will I be offered?
Lenders offer interest rates on their mortgage products based on personal finances and their credit history. With a bankruptcy on your file, you will be deemed a lending risk and are highly likely to be offered a much higher interest rate in comparison to those with good credit. More often than not, you’ll be offered the maximum interest rate the lender can offer.
This can make getting a second mortgage after bankruptcy unaffordable and you may want to save more for a greater deposit so you need to borrow less.
How many years after bankruptcy can you get a mortgage?
Getting discharged from bankruptcy usually takes 12 months, but there are some instances when it can be quicker. Only after you are discharged can you apply for a mortgage, which usually means waiting 12 months minimum. However, your chances of getting approved during this time are much lower and it is advised to wait at least three years before applying.
