Following bankruptcy, most mortgage providers will expect you to wait at least two years before applying for any kind of substantial loans such as a mortgage. After bankruptcy it is possible to get credit but it will be on very different terms to credit that was available to you prior to bankruptcy.
The kind of criteria that lenders will expect you to fulfill will be things such as proving you can make regular repayments and have a regular income. They will also expect you to have a substantial sum of money as a down payment for your property. This is one of the main ways mortgages for people who have gone bankrupt vary from regular mortgages. Lenders will see you as a high-risk to them, and therefore they need some kind of reassurance that you are not going to default on repayments. By asking for a larger than average down payment on the property, they are making sure you have a vested interest in the property and are commited to maintaining payments on it. It may also be the case that there is an arrangement fee that you will need to pay, again this is the lenders way of making sure you are serious about acting responsibly towards your debt.
You will find that your mortgage interest rate may be higher than those offered to low-risk borrowers, this again reflects the risk the lender feels it is taking. It is possible that these rates will come down over time as you prove you are able to keep up with the repayments and are commited to paying off your mortgage. It will be possible to get either a repayment or interest only mortgage after bankruptcy, as the fees and rates that form the package will ensure that the lenders risk exposure is minimised, so it is up to you to choose the product that best suits your needs, and also is one that you can manage. There is no point taking out a repayment mortgage if really all you can afford at the present time is the interest repayments, this is how problems start and potential defaults start to occur. Due to the fact you have bad credit, even one missed or late payment can have a big impact on your credit rating and your creditors attitude towards you. Being in a high-risk group means that anything that can be perceived as a warning sign of potential defaulting will be taken as such, and may result in penalties or higher interest rates and worst case the withdrawal of credit.
While the attractiveness of the packages on offer may be limited, you will still find a good range of mortgages available to you through the right specialist lender.