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  • FIRST POST
    • Happyhaz
    • By Happyhaz 19th Apr 17, 4:36 PM
    • 1Posts
    • 1Thanks
    Happyhaz
    Getting a mortgage as a discharged bankrupt
    • #1
    • 19th Apr 17, 4:36 PM
    Getting a mortgage as a discharged bankrupt 19th Apr 17 at 4:36 PM
    Hi, not sure if this is the best place to ask or not. If not please move or close...

    I was discharged from my bankruptcy in February following my business going tits up. Since then I've got a full time job and earn 30k P/A.

    My girlfriend has a perfect credit score and earns 32k p/a and has around 20k in savings.

    A few questions -

    Can we look to buy somewhere straight away? Will her perfect credit score help against my past? Or will they just assume the worst because I'm involved?

    What are the best things I can do to improve my credit score? Is it worth getting a CC or buying something small on finance?

    Thanks so much
Page 1
    • mwarby
    • By mwarby 19th Apr 17, 8:18 PM
    • 783 Posts
    • 292 Thanks
    mwarby
    • #2
    • 19th Apr 17, 8:18 PM
    • #2
    • 19th Apr 17, 8:18 PM
    Most banks won't want to touch you until the 6 year point. Yorkshire and Nationwide both consider 3 years post discharge (although 95% LTV seems to be unavailable)

    Credit cards and loans have little impact on your ability to get a mortgage. By all means get them as they suit, but not for boosting your attractiveness to mortgage lenders. If you do get one be sure to always clear the balance, otherwise it could hurt affordability wise.

    I think the way forward would be for your OH, to get a mortgage in her name only
    • TheGardener
    • By TheGardener 19th Apr 17, 8:49 PM
    • 1,884 Posts
    • 1,744 Thanks
    TheGardener
    • #3
    • 19th Apr 17, 8:49 PM
    • #3
    • 19th Apr 17, 8:49 PM
    I would echo mwarbys post - you are highly unlikely to get near a mortgage for 6 years after BR. In the meantime the best things you can do are:
    1.Do not create any financial links between you and your GF so no joint savings or bank accounts until your credit file is completely sorted or your poor credit history will pull hers down. Unfortunately it doesn't seem to work the other way - her score pulling yours up.
    2. Demonstrate exemplary personal financial management - no late payments ever. Small amounts of credit paid off in full each month etc.
    3. Save, save and save some more towards a deposit.
    Last edited by TheGardener; 20-04-2017 at 9:32 AM.
    • ACG
    • By ACG 20th Apr 17, 10:32 AM
    • 14,705 Posts
    • 7,359 Thanks
    ACG
    • #4
    • 20th Apr 17, 10:32 AM
    • #4
    • 20th Apr 17, 10:32 AM
    There are lenders who will consider you after 12 months, however the rates are around 7-10% and would need a 25% desposit.

    There are a few lenders (4-5) who will consider you after 3 years at normal rates, you would probably need a 15% deposit.

    Another lender kicks in after 4 years, and another 2 after 5 years and then the rest kick in at 6 years discharged.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • Johnsmith2016
    • By Johnsmith2016 23rd Apr 17, 10:16 PM
    • 404 Posts
    • 215 Thanks
    Johnsmith2016
    • #5
    • 23rd Apr 17, 10:16 PM
    • #5
    • 23rd Apr 17, 10:16 PM
    You won't get a mortgage just yet.

    Nationwide is 36 months after discharge so that's the best option available to you.

    Do the credit file clean up and get your debts marked as satisfied .

    Get a vanquis or capital one credit card and pay off in full each month

    Save save save - you will need a min 15% deposit.

    For now she will need to get it in her name only.
    • Johnsmith2016
    • By Johnsmith2016 23rd Apr 17, 10:16 PM
    • 404 Posts
    • 215 Thanks
    Johnsmith2016
    • #6
    • 23rd Apr 17, 10:16 PM
    • #6
    • 23rd Apr 17, 10:16 PM
    Who are the lenders after 12 months ?
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