Mortgages for Bankrupt

CathyH27

Hi

Does anyone know what companies do mortgages for discharged bankrupts .. like just discharged?

Or even what sort of interest rate they would be looking at?

Thanks

Cathy

VfM4meplse

I don't know a great deal about bankrupcy but I do know that if you had a property repossesed previously the lender has a right to claim that money back from you for a number of years (is it 12?) and I would be v. cautiious about investing in property in the interim.

Santander (or The Grabby as they were fondly referred to) were famous for it after the last recession.

philnicandamy

depends on how long discharged? some members have been sucessfull after around 2yrs or so discharge....but it'll be very difficult for anybody (including discharged BR's) in this current financial climate to get a mortgage...you might find someone but the deposits will be scary

CathyH27

No they have had no repossessions, they are currently bankrupt and will be discharged soon, they have to put together a proposal of how they are going to pay back the debt (obviously without selling their house) so a remortgage is one of those options

worth adding they have a 53k mortgage from about 1985 and a property value of about 350k so deposit or LTV is no issue

philnicandamy

CathyH27 wrote: »

No they have had no repossessions, they are currently bankrupt and will be discharged soon, they have to put together a proposal of how they are going to pay back the debt (obviously without selling their house) so a remortgage is one of those options

worth adding they have a 53k mortgage from about 1985 and a property value of about 350k so deposit or LTV is no issue

what debt to repay? most are written off in bankruptcy so i'm a little confused

So_Sad_Angel

As previous Mortgage Advisor...the `have you ever been BR` question is aways asked so best to raise the issue before application stage. There are lenders out there ( they were often sub-prime but I guess that market is all but closed now)....rates will be high but given the high rate of defaults the future criteria may be relaxed somewhat in the future.l

You will find a mortage provider that will lend & rates can be anything above 3-6%+ over base rate... minimum!! ...better to start saving now because deposits will be high as well.

HTH. Angex

philnicandamy

And even after discharge the bankruptcy is kept on file at the insolvency service..the mortgage companys can & do search this file with any application

So_Sad_Angel

philnicandamy wrote: »

.the mortgage companys can & do search this file with any application

Every application is searched....best to be up front & be completely open when applying for any mortgage or credt.

BR is a `material fact` ...ie - it is a fact & it could effect the underwriting process.

Bnjracing

Quote "I don't know a great deal about bankrupcy but I do know that if you had a property repossesed previously the lender has a right to claim that money back from you for a number of years (is it 12?) and I would be v. cautiious about investing in property in the interim.

Santander (or The Grabby as they were fondly referred to) were famous for it after the last recession."

We went BR and property repossessed. Told that any shortfall would go into the bankruptcy. Confused by the above - can previous lenders come back at you?

ALSO - getting a mortgage once discharged. Hoping for a compensation payment following an accident so will have 35 - 50% deposit - would be looking to borrow 35 -50,000 - what would our chances be and roughly how much would it cost

nervousmother

we too had our house re-possessed, and were informed they could come to us for the shortfall for up to 12 years. for this reason we went BR, they still have not sold the house but the price it is on the market for at the moment will leave a £116k shortfall, yes 116k. that was the reason for our BR. We were told the shortfall would be included in the BR.

sarchet

Am thinking of going bankrupt, what are the main things I should know before doing this?

I currently have a buy to let house, would this be repossesed? as there are tennants in it?

Also, if it was re-possesed, the house would be in negative equity, so there would be a shortfall and wanted to know if this would be included in the BR?

Are you expected to pay anything back or is it all written off?

Also currently living with partner, who has their own property in their name only, will this have any affect on them?

How much does this cost and last for?

Need to know these things and other advice on this welcome, before commiting to BR.

Thanks