Can you get a Mortgage after a debt agreement?

This question is very much common for the people searching for home loans –

Question : will I be prevented from getting a home loan in the future if I enter into a Debt Agreement or a Personal Insolvency Agreement?

Answer : not necessarily.

It is obvious that it will depend on your current financial condition and the lender as each lender will assess your application differently using different criteria.

A few points you have to keep in mind before signing a Debt Agreement or a Personal Insolvency Agreement:

Both of these agreements will show up on your credit file for seven years from when you first entered into them. Whilst the agreement is still on foot you won’t be able to get new credit.

Once you have completed your agreement it will be updated as such on your credit file. This notation will remain in place until the full 7 year period has lapsed. So if you complete your agreement after 3 years, it will stay on your credit file for another 4 years.

After the seven-year period has lapsed your credit file should be fully restored. This means all defaults previously listed on your file will be wiped (assuming you haven’t defaulted again since entering into the agreement).

You will find that entering into a Debt Agreement or a Personal Insolvency Agreement offers more flexibility compared to formal bankruptcy.