Mortgage Advice

boggie40

Newly discharged bankrupt seeking a mortgage in this current financial climate.
I have trawled through many sites seeking out what their criteria is.
Most won't even touch me, some however are prepared to give me a chance.
I am looking at a property approx £155k (if they accept my offer) i have £35k for a deposit and am currently on a salary of £30k. My wife is bringing in approx £15k.

I have checked out the availability of just getting a mortgage for a bankrupt, so not even sure yet what interest rate they are offering it could turn out not viable for us if interest rate is too high.
One building society is known for being favourable to discharged bankrupts is the "Melton Mowberry" Anyone have any advice on this buiding society ??

Also i have been given the details of a company called "Equity Finance" do they charge for their services ???
Or should i use a free mortgage advisor on the high street ??

I am hoping for a fresh start with my new family, and appreciate all advice given.

Ian_Griffiths_Halifax

I hope you don't mind me asking, but how does somebody who is about to have a Bankruptcy discharged have a £35k deposit? I can understand if it's a gift from family or inheritance etc, but if you've managed to save this money from being given to the creditors then that is just wrong.

Is your financial stability in general, better now than before you went into bankruptcy?

Mr_helpful

boggie40 wrote: »

.
One building society is known for being favourable to discharged bankrupts is the "Melton Mowberry" Anyone have any advice on this buiding society ??

That is just pie in the sky

beecher

From a trawl of past posts

although my wife has been very good over the last 2 years. she has been saving meticulously in her account "just off the beach" if you know what i mean.

so we have a 25% deposit for house

saved £35k from a salary of £15k in 2 years? something missing from this information....

silvercar

When the money lands "on the shore", I'm sure the revenue and the official receiver will be interested!

Bottom line is that, if you find someone to lend you the money, the rate willbe rubbish and there will be high arrangement fees.

boggie40

I was declared bankrupt - my new wife was not !

The money was her settlement from her divorce, so nothing to declare to inland revenue.

Income was £15k from my wife and £30k my salary.

Hope this clears up any misconceptions that i have defrauded anyone.
I am in a much better position now than i was previously as i am not making payments of £1000 a month to credit card companies.......

luckyfool

Melton Mowbray will not touch with a bargepole, neither will any other high street lenders on standard rates until you are discharged for an absolute minimum of 3 years.

To get something immediately (assuming you are discharged less than 12 months), you are realistically looking at putting down a 25% deposit (which is slightly more than you are talking about. An example rate in those circumstances would be 8.19% for a 3 year tracker and with a 1.5% arrangement fee(7.99% if discharged for 12 months or more).

Can't comment on Equity Finance as I have never heard of them. If its the same lot as the mob I found through google at link, then they quote a £1,499 broker fee. That seems on the high side to be honest. I would be looking in your circumstances to get a good broker who you are comfortable with, sounds like they know what they are talking about, and is either willing to do it purely on commission, or for no more than a £300-£400 broker fee which would be reasonable on a more complex sub-prime case.

minimike2

Melton Mowbray own MBS Lending....I wonder if this is who the OP is talking about as they are an adverse lender.

They will consider you with a 25% deposit, £1195 fee, 9.5% fixed is the cheapest rate they currently do in this category (heavy) - for three years.

Max £8k in CCJs allowed in the last two years, otherwise it goes to Heavy+

They do not sell direct though - they only accept applications through brokers / intermediaries.

boggie40

Mortgage advisor just rang me and told me that the birmingham midshires will take me on as long as i have proof of my discharge.
Mortgage advisor also said it would be a good idea to check with experian and equifax that i am now showing as discharged on their records, if not contact them and ask what they need off me to proove my discharge - i;e a copy of discharge letter off OR.......

luckyfool

boggie40 wrote: »

Mortgage advisor just rang me and told me that the birmingham midshires will take me on as long as i have proof of my discharge.
Mortgage advisor also said it would be a good idea to check with experian and equifax that i am now showing as discharged on their records, if not contact them and ask what they need off me to proove my discharge - i;e a copy of discharge letter off OR.......

Thats who I was providing rates for earlier.

If you are planning to do something with them I would make it sooner rather than later as there is speculation that BM Solutions might get the chop once LTSB complete their takeover of HBOS (which includes BM Solutions). In fact BM have already put rates up and restricted ltvs recently.

boggie40

Many thanks for the replies. we have had offer of £159,950 accepted.
Only problem i can see for us now is that mortgage advisor told us we would need 20% deposit so we got everything out of wifes savings and we are just shy of £34,500. I have just looked at BM terms and conditions concerning bankrupts and it states that they would require 25% of Mortgage. if this is the case my sums tell me we are short by approx £4000.
Would the mortgage advisor be able to negotiate a better deal of 20% deposit as he stated to us, or has he made an error......
When we need to speak to him we get answer phone - worried now that we may be short on finances.:(