Ex-Bankrupt looking for Mortgage

Janets_Daughter

Hi Everyone,

Apologies if this subject has come up before, but I'm having no joy getting the right information.

I decleared myself bankrupt in October 2005 and was discharged in October 2006. I am fully solvent and am saving up for a deposit on flat, I should have around £20,000-£25,000 in the next 3/4 years.

My question is: The bankruptcy should come off my credit record after 6 years, would this along with a decent deposit allow me to get a mortgage from a high street lender?

Thanks for your help!

cazjenki

Hiya have you visited the Bankruptcy board before, there is some great help on there http://forums.moneysavingexpert.com/forumdisplay.html?f=136

Janets_Daughter

I'll try it, thank you!

sammyjammy

Your bankruptcy may disappear in six years (does it?) but you have to declare it forever, its extremely likely to be a question on any mortgage application and could affect your chances.

feisty1

Apologies if this subject has come up before, but I'm having no joy getting the right information. Mmmm try speaking to a professional instead of a public forum


I should have around £20,000-£25,000 in the next 3/4 years. quote!!

I'm sure yr trustee would be pleased to know that!! In fact share with your Insolvency Practioner what you have shared here!

Janets_Daughter

I'm not sure what your problem is feisty1, but I'm just trying to get general information before I engage a professional. Also I do pay towards my bankruptcy on a monthly basis, so I'm not sure my insolvency practioner would have very much to say at all.

I know you're just trying to be controversial so I won't take offence.

Mateus_2

You will have always to state you have been bankrupt. It is possible in 3/4 years you may have access to a high street lender. For that you cannot missed a payment on any credit and the case will always to be referred, but some lenders are flexible. Also, this may sound strange but in a few years time you can try to get a small loan or credit that you can afford, so can show some sucessful credit payments and lift your credit score. But you have to make sure that if you do the loan or get acredit card, you can afford, if not will only do worse.


Thanks

koexelek

Mateus wrote: »

You will have always to state you have been bankrupt.

True, even if you lie to a lender and think you have got away with it, it will still show up when the solicitor does the bankruptcy search

feisty1

Janets_Daughter wrote: »

To accumulate that amount of savings suggest's u have a quite substantial amount of disposable income, if that is the case i am surprised you're in bankruptcy and not IVA/Trust Deed

Cazza

feisty1 wrote: »

Apologies if this subject has come up before, but I'm having no joy getting the right information. Mmmm try speaking to a professional instead of a public forum


I should have around £20,000-£25,000 in the next 3/4 years. quote!!

I'm sure yr trustee would be pleased to know that!! In fact share with your Insolvency Practioner what you have shared here!

Not sure this is relevent feisty1, as the OP was discharged two years ago????

OP, most "adverse" credit items will come off your credit history after 6 years, bankruptcy is the exception to the rule, this will stay on your file for 15 years and will usually have to be disclosed when you apply for any items of credit. Be VERY carful you read the exact wording of any applications you fill out, as some will say "have you been made bankrupt etc etc within the last X years", others will ask if you have EVER been made bankrupt.

Your best bet is to keep saving and keep general tabs on the market and what lenders are doing, as you are now. The other poster's suggestion, that you get a credit card is a good one, as long as you trust yourself with it! Clear the balance in full every month. In addition, you could try getting a mobile phone on pay monthly, (again, if you trust yourself!). If you rent your home, try to pay all your bills such as electricity, gas, water, telephone, by monthly direct debit. I have no idea why, bu I have noicted it helped improved credit scoring levels with some of my clients in the past.

The biggest challenge for you will be having a deposit big enough and without a crystal ball, no one can tell what lenders will accept in 3-4 years time. So keep saving. Good luck!

Cazza

feisty1 wrote: »

Janets_Daughter wrote: »

To accumulate that amount of savings suggest's u have a quite substantial amount of disposable income, if that is the case i am surprised you're in bankruptcy and not IVA/Trust Deed

Saving £25,000 over 6 years is £350 per month, not a ridiculous amount. OP may have received an inheiritance or be including interest in that amount. Regardless of that, she was made bankrupt 3 years ago and discharged 2 years ago, so it's a bit pointless discussing if she did the right thing at the time now the horse has bolted??!