Mortgage Refinance After Bankruptcy

1 July, 2015

Mortgage Refinance After Bankruptcy!

If you are considering remortgaging your home after Bankruptcy,
there are many factors to consider in the decision making
process. Here we discuss some of the essentials topics that will
enable you to decide if releasing equity from your home is your
best option.

Becoming bankrupt

If you are in a bad debt situation and are thinking of declaring
yourself bankrupt, then the first thing you should do is get
legal and financial advice to make sure that this is your best
option. Don’t leap ahead to thinking about refinancing after
bankruptcy if you haven’t even decided if bankruptcy is the best
thing for you.

Once you have taken the decision to become bankrupt, or you have
been declared bankrupt by your creditors, you will need to take
some time to deal with the immediate consequences of bankruptcy
and work out your next moves. Think about what you want to
achieve in the future. If your house has had to be sold, or
part-sold in order to clear your debts, then you may want to
look into mortgage refinance after bankruptcy so that you can
see what your options are.

My options

If you have been declared bankrupt, but your period of
bankruptcy has ended because all your debts have been cleared,
you can look at your options for the future. These might include:

-Employment. If you were self-employed before bankruptcy, then
you may want to consider being an employee. This can remove the
stress of self-employed earnings and can also put you in a
better position when it comes to applying for loans or mortgage
refinance after bankruptcy.

-Debt. The experience of being declared bankrupt should have
convinced you to take a different attitude to debt, and make
sound financial plans, with help and advice where needed, to
ensure that you don’t run into such big problems again.

-Restrictions. Expect some restrictions to be placed on you,
even though you have been discharged from bankruptcy. Most
credit applications will ask if you have ever been declared
bankrupt and you must answer honestly. Your chances of getting a
loan at standard rates may be affected by your bankruptcy for
some time.

-Advice. Even after your period of bankruptcy is over, it is
worth retaining some of the advisers you had to use. Not only
will they know your financial background, but they should be
well-placed to advise you in the future.

Getting Advice

If you are thinking about mortgage refinance after bankruptcy,
then all the above considerations apply to you. A mortgage
lender will want to know that you are serious about not
returning to a position of bad debt and they will also be
reassured if you are in full or part-time employment. There will
be restrictions placed on you because of your credit history and
you will need professional mortgage advice to ensure that you
get the best mortgage product for your needs. If you don’t
already have a mortgage adviser, then talk to an experienced
mortgage broker who can talk you through the mortgage refinance
products that are available to you, and advise you on how to
approach your application to get the best results. Whilst
getting mortgage refinance after bankruptcy is a good idea,
because it can give you access to lower interest rates than some
other mortgage deals, you will need to take advice to make sure
it’s the right route at the right time.

About the author:

Elizabeth Grant writes exclusively for The Mortgage
Broker specialist websites. To read more of Elizabeth’s
articles on Adverse Credit Mortgages please visit the Adverse Mortgage

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