View more on these topics

Bankrupt borrowers risk being ‘unmortgageable’

Many borrowers face the prospect of being ‘unmortgageable’ by declaring themselves bankrupt this year, warns solicitors Moore Blatch.

The firm, which specialises in repossessions, claims repossession cases are being compounded by a cavalier attitude towards credit.

Moore Blatch says the popular misconception is that debt problems can be written off through bankruptcy and IVAs.

But the solicitor firm has reviewed product data from Trigold which shows that the level of available mortgage products for those made bankrupt has dropped a massive 96% in the space of just two years.

Paul Walshe, head of lending services at Moore Blatch, says: “Although bankruptcy does not automatically signal that you are unmortgageable, it does leave a very visible scar on your credit history.

“Up until the credit crunch it was possible to find lenders that would provide mortgages to bankruptees, and this led to a popular misconception that you could borrow and forget about paying it back with no long-term consequences.”


Cattles asks for government aid

Troubled lender Cattles pleaded with the government last week to include secured lenders in its loan guarantee scheme to help kick-start its lending operation.

Openwork adds Halifax and Uinsure to GI panel

Openwork partners are now able to access Halifax general insurance and Uinsure, alongside the existing propositions from Cardif Pinnacle, Paymentshield and Zurich.

BM Solutions and BoS desert specialist sector

Competition in the mortgage mar-ket was dealt another body blow last week as BM Solutions and Bank of Scotland announced their with-drawal from the self-cert and sub-prime sectors.

A question of service

Roy Armitage, head of credit, LendInvest Selling a loan is the part of a lender’s workload most visible to brokers and borrowers. Just as crucial – but less frequently observed – is how that lender services that loan. A commitment to quality servicing is one that’s front and centre for us at LendInvest and it’s […]


News and expert analysis straight to your inbox

Sign up