If you have been declared bankrupt, the financial services industry will place a big black mark against your name which will stay on your credit file for six years to come. A bankruptcy can be a huge obstacle when trying to get a mortgage, because ex bankrupts are seen to be higher risk than other borrowers.

The good news is there are lenders who recognise that a history of bankruptcy is not necessarily an indication of a borrower’s ability to pay their mortgage. 

Personal bankruptcy has increased in recent times and there isn't such a stigma relating to bankruptcy these days. High profile figures such as the round the world yachtswoman, Tracy Edwards, was declared bankrupt, reportedly owing £8 million.

Up until the implementation of the Enterprise Act in April 2004, any person being declared bankrupt would have had to wait for around three years before their debt was discharged. Since the introduction of the Act, this time period has been reduced to just one year.

In order to apply for a mortgage you will need to be a discharged bankrupt. 

A specialist mortgage broker can put you in touch with lenders who firmly believe that your past financial problems shouldn’t be a barrier to getting a mortgage today.