Know About Ex Bankrupt Mortgage

Feb 3rd, 2014 | By | Category: Legal

Bankruptcy applies to any individual debtor who is unable to repay their debts within a certain time under the Insolvency Act of 1986. If you’re declared Bankrupt and need a Bankruptcy mortgage from a professional Bankruptcy mortgage lender, you’ll be submitted to certain restrictions which include access to credit. Around 12 months later, once creditors are satisfied that the Bankruptcy debt is being dealt with, the debtor will be discharged from Bankruptcy and may find they can start to borrow once more.

A bankruptcy mortgage is a mortgage application for people that have declared themselves bankrupt in the past. While turning to bankruptcy or individual voluntary arrangements may remain the only way to come out of debt for some people it leaves a bad mark on their credit rating: a bankruptcy mortgage is conscious of the borrower’s credit history but is willing to lend them the money under certain circumstances where they would be refused by a standard mortgage.

Of course, there are other things to consider when talking about ex bankrupt mortgage…

A bankruptcy mortgage is higher risk than a standard mortgage because it is intended for people who’ve had financial difficulties in the past. As such it is called a sub prime mortgage and is only available from specialised lenders, although the number of firms offering mortgages for individuals with adverse credit is growing. Currently there are around 30 lenders that offer bankruptcy mortgage services according to a study done by the Council of Mortgage Lenders (CML). The rates for a bankruptcy mortgage are likely to be a few percentage points higher than a standard mortgage but individual case history and the circumstance of your debt will be considered.

FAQ’s: how do i get my ex who is bankrupt off the mortgage?
i own a property with my ex we split up 3 years ago, but i have continued paying my half of the mortgage, i recently found out that he has not contributed towards the mortgage for over 18 months and then declared himself bankrupt the beginning of this year, is there anyway out for me? i can't afford the mortgage on its own as its too much but i am liable now he is bankrupt, i feel like i am on own but i sure there is others out there who have gone through the same things. HELP!

  • The ONLY way is to re-finance the property and buy his share. The new mortgage will have only your name on it. There will be a new deed prepared from you and your ex as the Grantors. You'll both sign that new deed. Then you will be the Grantee – sole owner of that property. Thanks for asking your Q! I enjoyed answering it! VTY, Ron Berue Yes, that is my real last name!

  • Hopefully you have some equity in the house where you can refinance to get his name off, then try and sell the place maybe

  • Usually bankruptcy lasts for a year, therefore after this time you can ask a mortgage although whether or not it is granted will vary according to your credit record and the circumstance. Bankruptcy will stay on your credit record for six years. Usually individuals will have to demonstrate evidence that the circumstances that caused bankruptcy no longer apply.

    Getting a bankruptcy mortgage is a good way to improve your credit rating if you’ve been bankrupt in the past, as long as you can save up with your mortgage repayments you’ll be proving to future lenders that your financial management has improved.

    A bankruptcy mortgage is a mortgage application for people who’ve declared themselves bankrupt in the past. While turning to bankruptcy or individual voluntary arrangements may remain the only way to come out of debt for some people it leaves a bad mark on their credit rating: a bankruptcy mortgage is conscious of the borrower’s credit history but is willing to lend them the money under certain circumstances where they would be refused by a standard mortgage.

    Bankruptcy mortgages are particularly specialist, therefore many firms that offer them only do so through a factor. Approaching a broker will give you access to a very large amount of deals from a number of firms, because the rate you get quoted will depend so much on your previous case history going through an intermediary who knows the industry is the surest way to have a good deal and save you money.

    Mortgage brokers come in various flavours these days. Some may only cope with a few lenders, some will be whole of market which means they deal with all lenders and some will be true independent mortgage brokers. Independent mortgage brokers have to do 2 things; they have to cover the entire market and they have to offer you a fee only option when discussing their payment terms. Do not be put off by this. Even though an independent mortgage broker has to provide this option, they’ll often still be able to provide advice on a commission only basis or commission plus a client fee.

    The most important thing to establish when looking for a bad credit mortgage broker is how much experience they have in addressing these types of mortgages. Some brokers seem to be experts at everything but this is rarely true. Ask your mortgage broker how much of their activity is bad credit, ask them what kinds of clients and what kind of bad credit they usually deal with. Perhaps one of the worst bad credit problems is bankruptcy. Discharged bankrupt mortgages are a difficult area but their are mortgage brokers who’re highly skilled at helping clients in these situations.

    So once you have determined that your mortgage broker is experienced with bad credit mortgages you need to consider money. More importantly, you need to consider how much YOU will have to pay for their assistance and advice. Some mortgage brokers will receive and keep commission from the mortgage lender and they’ll then charge you an extra 2-three per cent of the mortgage amount. This is a large amount of money and is excessive. They know that you have few places to go for your bad credit mortgage so they hike up the fees.

    When you have decided upon a mortgage broker then they’ll need to ask detailed questions about your credit problems. Some bad credit mortgage brokers will ask you to request a copy of your credit file just to be sure of the facts. These are all good points and the broker’s on your side. They need to know all of the details so they can have the best deal. Once the mortgage is aplied for your broker should help with admin and assist with any problems along the way until the loan completes.

    Many brokers now will contact their mortgage clients in the future. This may be when any early repayment charges have ceased on your mortgage. It may then be possible to remortgage away from a bad credit lender onto a prime scheme which will become a lot cheaper and save you money depending on your circumstances.

    When applying for a mortgage in adverse credit circumstances providing all the details of your credit history is important, the more information you give the more they’ll understand your personal circumstances. You will also need to give proof of your income. Before you approach a lender it is a good idea to think realistically about the amount you can afford to borrow and what monthly repayments you would be in a position to keep up with.

    When it comes to Bankruptcy mortgages and financing, those who’ve become Bankrupt through lack of mortgage funds may find that the image isn’t as bleak as it was 10 years ago. In the past many lenders stopped debtors from borrowing for up to seven years after Bankruptcy. Today, due to lenders specialising in adverse credit, borrowers may still be able to maintain their home while they have considerable arrears. However, even the most specialised Bankruptcy Mortgage lender will apply restrictions to Bankruptcy mortgage refinancing, in order to make sure they’re covered if the lender cannot pay.

    A bridging loan is often used when an individual is unable to pay a mortgage at a certain time. It is a temporary solution to mortgage arrears and is usually accessed to alleviate cash flow problems until a source of funds can be found. A bridging loan isn’t just suitable for those hoping to pay off a residential mortgage, as it can also serve to extend property or to purchase a business.

    If you need some cash up front to find a mortgage for a bigger property, a bridging loan could be the right solution. For example, you have found your dream home but your first property remains on the market, so you need some money now to make a deposit. A bridging loan can also serve to buy a property at auction. In this case you might need a deposit quickly to ensure that the mortgage lender can organise the payments for your new property.

    A bridging loan is more expensive than a normal mortgage and shall not be used by people who can pay back quickly. They can be an excellent solution to search for a mortgage speedily by providing the required deposit. However, at the same time they’re risky if you’re unable to find the borrowed cash within the given time frame.

    The amount of money you can obtain from a bridging loan is contingent on the value of the properties involved and any existing mortgage. Speak to your individual lender to find out about their bridging loan policies and discover if you are able to afford to search for a mortgage before your existing property is sold.

    Although you may find that your high street bank offers bridging loans, it would be a good idea to shop around and visit a series of specialist bridging loan lenders before deciding. A specialist will have the knowledge and resources needed to deal with your request quickly. This can make a vast difference when it is a question of the property market. In general if you want to search for a mortgage, extend a property or buy a business, a bridging loan can be either a quick fix solution, providing ready cash within 10 days.

    You can also ask for a bridging loan if the sale of your house falls through but you want to buy another property. Bridging loans however are expensive and represent only a short-term solution. In today’s property market selling a house could take time so you may want to consider changing your previous property to a to-let mortgage, or a quick-sell or auction would enable you to sell your property quickly and increase the money you need to buy your next property. You would also probably find that a second mortgage with no early repayment fees would work out cheaper than using a bridging loan.

    There are two types of bridging loans, ‘closed’ bridge loans and ‘open’ bridge loans. Closed are available to people who’ve already exchange contracts on the sale of their current house, while open bridge is where a sale hasn’t been closed but where there it is very likely that a sale to be held in the near future: your house must already be on the market. Most mortgage lenders will only allow 12-month open bridge loans, after which time the loan will have to be renegotiated.

    Bridging loans are more expensive than standard mortgages because they’re short term. Usually they charge 2-2.5% in addition to the Bank of England’s base rate as well as an arrangement fee around one percent of the total loan. Beware of lower or no arrangement fees as this may be indicative of high interest rates, whether or not you opt for a lower arrangement fee or lower interest rate will vary according to how long you envisage to use the loan, if you only intend to borrow for a brief time and are confident you can pay off your debt after this time then a lower arrangement fee is more sensible.

    There is very little difference between a buy to let mortgage and a traditional mortgage except a buy to let mortgage is adopted in the assumption that income from rent will be used to pay off the mortgage. When it comes to buy to let mortgages there are two main types you’ll need to choose between-a repayment mortgage or an interest-only loan. With an interest only mortgage, lenders are often in the search for a suitable investment product, while with a repayment mortgage, some lenders may ask for life insurance in connection with your loan.

    Other options include fixed rate and variable rate mortgages. A fixed rate loan should provide you with some certainty about your monthly repayments whilst variable mortgage rates can change from month to month.

    When choosing a buy to let mortgage, take some additional sound property advice from an independent adviser or mortgage intermediary, in order to assist you consolidate your ideas.

    When it comes to buy to let mortgages we recommend you consider all of these issues before you sign a contract. In addition you should get independent tax, legal and property advice from qualified specialists who’ll help you see all the disadvantages and advantages of this investment method.

    As the property market struggles many people are choosing to rent out their property and rent elsewhere to respond to their changing needs. In order to rent out your property you’ll have to change from a normal repayment mortgage to a buy to let mortgage. While mortgage brokers are usually good for you to do this, you may incur a fee or a higher rate of repayment; so do your research, and compare remortgaging to buy to let quotes.

    Buy to Let Mortgages available today. By visiting our site you will receive a FREE copy of’ The Essential Property Ebook" together with Free impartial property Advice for all your property needs.


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