Let’s be real here — bankruptcy is no laughing matter. Once you decide to declare a bankruptcy, there’s no turning back. You’re making a decision that will affect your credit for a very long time. However, don’t let this information cloud your thinking, as if you aren’t going to see sunnier skies ahead. The reality is that most of the people that declare bankruptcy really had no other option. It’s time for a fresh start. If you know that you’re ready to make changes in your financial life, then bankruptcy is a valid option. You will not be able to let your spending get out of control again. After all, you have to remember that you’re not going to be able to declare bankruptcy again. So that option will be locked away from you. If you feel that you’ve “learned your lesson”, it’s time to check out the world of credit again. We promise you that there are plenty of opportunities out there to make your dreams come true.
One of the top questions that people have after bankruptcy is about whether or not they can actually get a house. The UK housing market is actually very forgiving to those that have declared bankruptcy. If you’ve started getting new credit and taking care of it, lenders will be watching for this. Mortgage offers could come to you as early as six months after your bankruptcy has been fully discharged. This is something that can make you feel pretty good.
The truth is that lenders have all of the reason in the world to start looking at you. After all, you can’t declare bankruptcy again, and most people have realized that it’s time to make a change. This means that they’re getting a potential mortgage customer that really does understand what it’s like to be upside down deep in debt, and they don’t want to go back to that place ever again. This means that they’re getting customers that are much more likely to pay their mortgage payment on time each and every month, the way it’s supposed to be.
First and foremost, you want to get a copy of your credit file on your own. You want to check it for any errors. While it’s true that your bankruptcy will be on there, you want to make sure that everything looks proper. Are there debts that weren’t included in bankruptcy? If so, they need to show that they are being paid on time as promised. Indeed, you want to show as few late payments as possible. After bankruptcy, missed payments really do start counting hard against you. The credit system rewards you after bankruptcy very well for making good decisions, but if you don’t straighten up then you’re going to get dinged.
It’s also a good idea to discuss your report with your mortgage lender. You want to make sure that they understand that you really have changed. If you have kept the same job that you’ve had before the bankruptcy, this is a positive thing that should count very much in your favor.
Another point here is that you need to make sure that you are looking for a house that’s truly in your budget. If you get approved for 120,000 GBP home and you can find houses for 85,000 GBP or even better, then you want to go with the cheaper home. There’s always room in the future to get a home improve loan to improve upon what you have. You need to start thinking “starter house” rather than trying to expect the perfect house with all of the bells and whistles. Remember that you want to go easy when you’re trying to get your life together.
Don’t forget that you really want to make sure that you have a good savings account. You’ll need to put up a strong deposit because you do have credit problems as part of your file, and you’ll also need to handle the initial fees involved when getting a new home.
It sounds like a very challenging process, and it can most certainly be that way. However, there’s nothing that says that you have to skip over getting a home for you and your family. You just need to make sure that you’re thinking about all of the little details that go along with this new goal of yours. Good luck!