When it comes to mortgage lending, in many circumstances it comes down to deposits/equity and your ability to meet loan affordability criteria, which can be different depending on which lender you approach.
However, another key area of mortgage lending is your character, which covers your overall position as a borrower – including for example, credit history and account conduct. As you can imagine, filing for bankruptcy and reaching an insolvent position for which an individual or entity is unable to repay their debts, is not a good look to a potential creditor.
As far as I understand, financial institutions are unable to lend to bankrupt borrowers, however, once bankruptcy has been discharged and your credit history is clear (several years later from the initial bankruptcy) you can then re-apply for lending under standard criteria.
However, if you have minor issues with credit history, such as small defaults, and bankruptcy has not formally been applied for, there still may be options from a financing perspective to assist with your situation, on the assumption of course that there is the possibility for you to avoid bankruptcy by taking on additional finance.
If you would like more information or arrange a consultation please do not hesitate to email me at ryan@krispedersen.co.nz.
ABOUT THE AUTHOR
Ryan Smuts
Ryan is a Key Accounts Manager at Kris Pedersen Mortgages and Insurance as well as a property investor.
