Re: First mortgage but made bankrupt June 2005

sjane2008

Hi all,

I am new and need some advice that may effect my future. I was declared bankrupt (no judgements please!) in June 2005 due to personal affairs.

I have since rectified my financial circumstances and each day am trying to repair the damage done. My mother is wants to sell me her house as she is leaving the country and wants me to be secure and believes it's a great oppportunity for me to ever own my own house (as lets face it it's rare for us single people with no deposits and large incomes!)

It's a great chance but would anyone offer me a mortgage? I earn enough to meet the monthly payments and can rent out the spare room if necessary. Any ideas or help on how this could work?

Thank you...ps was cleared of bankruptcy early so in decemeber 2005

x:o

zAndy1

It will all depend on the amount of mortgage you need and the value of the house so if you could post those values it would help people give the proper advice

sjane2008

Its worth £175,000 and I need a mortgage of £85,000 to cover my mothers

x

zAndy1

Well in that case there's no issue with the LTV, as long as you can afford the payments then you should be ok there should be somebody out there prepared to lend to somebody that's been discharged for nearly 3 years when the LTV is that favourable, even in the current climate...

sjane2008

Sorry but what is a LTV???

HeadInSand_2

Loan to Value
(e.g. the loan is quite small compared to the value of the house, so a fairly safe bet - they can repossess and get their money back easily, a bad LTV would be a loan of £180k on a house 'worth' £185k)

arkie

You could be limited to lenders, I can think of at leaset 1 so it is possible to do this but you have to make sure if your mum has a mortgage she is upto date with all the payments as the lender i know that will except you wants to see proof that your mum is not in arrears on her mortgage

sjane2008

My mum has a perfect history, all up to date, jealous in fact! Can i ask which lender that would be?

herbiesjp

So in effect is your mother "gifting" you the difference between £175k and £85k - so in effect that becomes your deposit?

At under 50% LTV you will find lenders to agree this for you. I would suggest speaking to a whole of market adviser to see if they could get this agreed with a high street lender first - but it will all depend on what information is held on your credit file. Do you have an up to date copy of your credit file?

sjane2008

My credit file does not show my bankruptcy on any report, call credit/experian/equifax etc however I know I have to disclose it by law.
I have a credit card which I pay back reguallry to build up credit and the halifax recently offered a guarenteed loan of £1700 which I of course declined!!!


The only feedback I have had from my bank is that i have only been there 4 mths and as been renting in the past my addresses where erratic however have always been a min stay of a year.

herbiesjp

Your address history will impact slightly, but I would have thought you could still get better deals or lower fees at least