Getting a mortgage after sequestration

Please note – we cannot provide mortgage advice.

Sequestration is a serious form of insolvency action, equivalent to bankruptcy in the UK, which can affect your chances of getting a mortgage. Once placed into sequestration, your assets and equity will be transferred to the ownership of a trustee who will manage the sale in order to release cash and repay creditors.

After sequestration, you will receive a discharge notice which will officially mark the end of your bankruptcy. This is typically 12 months after the date of sequestration, on the anniversary that you entered into it. As a result, your chances of getting a mortgage will be limited. This will typically be based on your spending record and the timescale from when you entered into sequestration.

What are my chances of getting a mortgage after sequestration?

Many lenders will refuse a mortgage application if you have entered sequestration. The register of insolvencies will record all live cases of sequestration which typically run for 12 months if all terms are adhered to. The register of insolvencies is the Scottish register which records insolvencies of individuals and businesses. Sequestration will also be visible on your credit record for future lenders and banking providers. Following a period of six years; it will no longer be visible.

Specialist Mortgage Providers

Amongst brokers and high street mortgage providers, it is worth noting that there are lenders who specialise in providing mortgages to those discharged from sequestration. Mortgages of this sort are typically easier to secure but there may be restrictions in place, such as high interest rates. The fees may be higher than expected and you may have limited access.

Securing a mortgage after sequestration can be a difficult and testing process; however, there are options available for discharged bankrupt individuals. Keeping a steady track of your credit record can help pinpoint your pressure points and how you can improve this. There are credit check agencies who can offer regular credit reports such as Equifax, Experian, and ClearScore.

If you would like more information on getting a mortgage after sequestration and how this can affect your options available, Scotland Debt Solutions can help. We can provide professional advice on how to ensure you have the best chance to qualify for a mortgage. Call the Scotland Debt Solution team for a same-day consultation at any of our four offices in Scotland, or a location of your choice.