Bankruptcy Effects On Mortgages

Albert_32

I have a real difficult decision coming up and could do with some general advice.

I have a mortgage with the Nationwide under my name, I am the main income earner = +£40k p.a.

I am living with my partner who is discharged from bankruptcy several years ago.

We want to move house and add her income to the mortgage to gain a larger property, but I am afraid of the consequences. Can anyone offer me any ideas if I put my partner down on a mortgage application what could be the outcome:-

1) Accepatance
2) Credit ratings etc

Would real appreciate any views of this.

Thanks,

Albert

herbiesjp

All lenders treart "adverse" credit history differently, however I would think that some high street lenders could now look at the joint application for you.

How long ago exactly was she discharged?

Have you got a copy of both your credit files to see what shows up on the reports?

Albert_32

Hi herbiesjp ,

My partner has been discharged for 18 months now.

Nothing is showing on a credit search through 'Experian'.

I would be using 1st Income of 40k, and 2nd Income of 18k to generate a larger mortgage.

Do you think I would have to nominate this information on an application form and equally for the 2nd Applicant?

I don't want both a mortage rejection coupled with my credit rating being adversely affected.

Appreciate your thoughts....


Albert

AndrewSmith

The bankruptcy will not necessarily show on an Experian report, however during the conveyancing process carried out by your solicitor and the lender's solicitor they will carry out a bankruptcy search where the details will be noted.

Secondly, even though your partner may not wish to go on the mortgage application as an applicant, if your partner is living with you this must be declared to the lender at the time of application. Also as you are living together in a relationship there will be a financial association between you which may also show on certain credit reference searches anyway.

If you do add your partner to the mortgage you must definately declare that she is a discharged bankrupt and include details. There will be a specific question asking for this.

I have to agree with Herbie,many high street lenders are now much more sympathetic towards adverse credit historys.

Ask people you know to recommend a reputable mortgage broker to you, and see what he/she has to say. Make sure that the High Street lenders are considered first, before he/she opts for specialist or centralised lenders.

Hope this helps

Andy

Albert_32

Thanks for your advice - I think the best course of action as you suggest is to have a discussion with Nationwide and then look at the options.

Let's hope that they are both sympathetic and my credit rating stays largely intact.

Appreciate you taking time out to offer your advice.


Regards,


Albert

herbiesjp

As already posted, the simple answer is yes - you will have to declare the discharged bankruptcy if the application is in joint names.

Also as rightly said, the application will ask if anyone else is living at the address which again you would need to put down your partners details.

As stated previously, all lender s have different ways of assessing "adverse" history so may be worth while having a chat to a broker.