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If you would like to speak to a bankruptcy loan adviser then please call the number above or contact us online. All advice is free and you are under no obligation at any time – we are happy to answer any questions you may have. Rest assured one of the most common questions is on loans after bankruptcy, so we will be pleased to help.
If you would prefer to do some homework first, we recommend you read the following article.
A bankruptcy does not disqualify you from borrowing and many people who have been filed bankrupt are still able to obtain credit.
It is true, however, that the number of loan providers willing to lend to someone with bankruptcy on their credit file are few in comparison to ‘mainstream’ lenders. A bankruptcy loan is therefore not much different to any other kind of adverse loan – a loan that is offered to someone with a CCJ, bankruptcy or IVA against them.
The good news is there are lenders who specialise in loans after bankruptcy and if you are not satisfied after discussing a bankruptcy loan with us, you should be able to find another provider by searching online.
Call us on 0800 520 0923 for a no obligation chat today or contact us online.
A bankruptcy loan can be used for various reasons, including:
Lenders will always seek to protect their assets when lending to someone who presents a ‘high risk’. People with a CCJ, IVA, Bankruptcy or credit defaults on their credit file will be regarded as high risk.
While this does not mean you are ineligible for a bankruptcy loan, lenders will require some form of security to back up the loan application – usually your home. They will also charge a higher than average interest rate on the loan to reflect your poor credit rating.
It may be possible to avoid bankruptcy by using a debt consolidation loan. If you are struggling to repay your debts you could consolidate multiple debts, charging various interest rates, into one lump sum to be repaid at one set rate.
A debt consolidation loan may free up some money that could get your finances back on track and help you avoid bankruptcy.
Debt consolidation is no magic wand and should only be used if it will make a marked improvement on your financial situation.
For free advice on a debt consolidation loan, call one of our friendly advisers for a no obligation chat on 0800 520 0923 or contact us online.
Like any other kind of loan, the lender will assess your credentials before agreeing to lend you money. The main aspects the lender will consider, include:
For a bankruptcy home loan, the lender will also consider:
Note: Defaulting on loan repayments risks losing your home.
To stand a good chance of receiving a bankruptcy home loan you will almost certainly need a sizeable deposit, perhaps 15% of the property value. The bigger the deposit the better deal you will receive, so it is in your interest to put as much of your own money forward as possible. The higher the deposit the lower the interest rates will be.
If would like to release cash tied up in your current home, borrowing will be much simpler because you won’t need to raise a deposit.
The chances of you getting a bankruptcy home loan will also depend on your marital status, salary, employment history and credit file.
Once your bankruptcy has been discharged, get a copy of your credit report and ensure it is up to date. Credit agencies will allow you to add a note to your file, so it is always a good idea to explain why you went bankrupt – assuming you had good reason!
Even if you have not gone through a bankruptcy it is always advisable to check your credit file is accurate and contains no false entries. Remember, bankruptcy will only show on your credit report for six years though you may be asked if you have ever had a bankruptcy order made against you when applying.
