Can a Person Who Went Through Bankruptcy Get a Home Loan? 

Yes, even if you were bankrupt before, you can still get a home loan to buy a house or an investment property. Think of it as a reset button for your finances, not a dead-end. 

How Much Can I Borrow? 

• With one of our specialist lenders, you can borrow up to 95% of the property value (but stricter criteria apply). 
• If you’re already discharged from bankruptcy, you can borrow up to 85%. 
• If you’re in good financial shape now, you can borrow up to 80% at standard home loan rates (with conditions). 

Will I Get Approved?

You must have already been discharged from bankruptcy. Being discharged for just one day is okay. 

What is Discharged Bankruptcy?

Being discharged means you’re no longer bankrupt. Restrictions during bankruptcy, like limits on travel or asset ownership, no longer apply. You’re free, but you still need to cooperate with a trustee for a set time. 

From a financial standpoint, it means you can apply for credit again. However, your credit file will still show your past bankruptcy. 

When Can You Apply for a Home Loan After Bankruptcy?

You can apply the day after being discharged through some of our specialist lenders. Major lenders often require at least two years of good financial behavior after discharge. 

Will I Get a Discounted Interest Rate?

Usually, you might pay a higher interest rate. But, with some lenders, we’ve secured normal home loan rates if your loan is no more than 80% of the property value, you now pay bills on time, the bankruptcy was a one-off event, or you’ve been discharged for a specific period. 

Are Low Doc Loans Available?

Yes, self-employed individuals who’ve been discharged can qualify for low doc loans. You need to meet standard low doc criteria and explain your credit history. 

Can I Refinance My Current Home Loan?

If you’ve kept your property or got one after bankruptcy, refinancing is possible.

How Long Does Bankruptcy Stay on My Credit File?

A bankruptcy record stays on your credit file for 5 years from when you became bankrupt or 2 years after bankruptcy ends, whichever is later. There’s also a permanent record on the National Personal Insolvency Index (NPII). 

Rebuilding a positive credit history involves paying bills on time, avoiding unnecessary credit applications, and being upfront with lenders about your financial history. 

Tips for Rebuilding Credit History: 

• Pay Bills on Time: Ensure all bills, utilities, and rent are paid on time. 
• Avoid New Credit: Minimize new credit applications, especially unsecured debt and personal loans. 
• Be Honest with Lenders: Disclose your financial history upfront. 
• Build Savings: Regularly deposit into a savings account to show improved financial standing. 
• Make Timely Repayments: Once approved for a home loan, ensure timely repayments to strengthen your creditworthiness. 

The goal is to prove that past financial issues are behind you, and you’re now a credit-worthy borrower.