Will we be able to get a mortgage?

leveller2911

confused31 wrote: »

yes neas;);););)

its just jealousy.

If this wa posted on the recession thread I would be asking the same, I don't think its unreasonable to ask.This is a forum after all..:D

silvercar

Windfall or no windfall, as a recently discharged bankrupt your credit rating will be poor. The chances of getting a mortgage of 5 times your salary from a High Street lender are virtually zero.

A sub-prime lender may consider you, but the rates will be much higher and the salary multiples lower. I would expect a rate of 8-10%.

Just for interest and it isnt really my business, how did you get discharged after 6 months?. just curious

Low income, no property owned, little disposable assets = very straight forward case = early discharge.

If ( and I am not suggesting you have done anything wrong, just warning) the Official Receiver has any reason to suspect anything untoward he can re-open your case. Buying a home so soon after discharge could look suspicious. Given that there are no 100% mortgages around, it will be obvious that you have found a deposit from somewhere, the Official Receiver may decide to investigate this.

lembert

I was a mortgage adviser and be careful.

When approaching a mortgage company, mainstream lenders often ask for proof from the administrator that your previous creditors have no stake to a future claim- this could open a can of worms because if they realise that you have come into money then they may ask for repayments although you were bankrupt!

It is probably in your best interest to approach an Independent mortgage adviser who will point you in the direction of a company that credit check but not score - this means that they will consider soft facts when they decide rather than your credit history.

Above all, you need to demonstrate inability to pay as opposed to didn't want to pay!

Kensington are a subprime lender anyway which means your credit history is probably not A1.

In this case, your best bet is to try and obtain credit such as a mobile, or mail order and make sure you make the payments religiously for 6 months so lenders can see you CAN make payments.

In terms of loan to valua (i.e lending 80k on £180k purchase price) the odds are well in your favour!!

1) Get a decent repayment record i.e by paying utility/catalogue/credit payments on time for at leat 6 months to show you've turned over a new leaf

2) Then go for it!

mbga9pgf

how about people start to learn to take responsibility for their own lives for once, instead expecting everyone else to come and wipe their !!!!!! for them because they made stupid life decisions?


THis thread is galling. Bankruptcy can cause complete devastation to small businesses, especially those that employ hard working DECENT people that pay off their debt.... If I came nto a windfall, I would go back and offer to pay back at least part of the losses, I wouldnt be able to sleep or look myself in the mirror knowing I stiffed people out of cash.

Time people woke up and realised the state isnt there to Wipe your @rse for you when its blatantly obvious you are playing the system.

silvercar

mbga9pgf has a good point, if your windfall means you can pay your creditors, you could actually get your bankruptcy annulled. This would improve your credit rating and enable you to access decent mortgage rates.

Of course it depends on the balance between your windfall and the amount owed to creditors.

BigSteveLondon

mbga9pgf wrote: »

THis thread is galling. Bankruptcy can cause complete devastation to small businesses, especially those that employ hard working DECENT people that pay off their debt....

Once again you don't know her circumstances.
I agree with the taking responsibility line, but I get from the little she has divulged, she became seriously ill and it effected their lives.

If the debt was with the local butcher fair enough, if it was with the banks that don't give a damn about us - just their top boys bonuses, then they can run and jump as far as i'm concerned. They certainly don't share their windfalls with us, even if we bail them out!

Some great advice from Silvercar & lembert I have to say. Stuff to bear in mind for all of us I think.

On a personal note, I have been paying into the 'system' since I was 14 (I'm 37 now). I was made redundant in December. I'm now for the first time in my life on benefits. I don't feel bad about the state 'wiping my @rse' for a while.

silvercar

I don't see the urgency to buy. Firstly house prices are falling so there is no rush and it could be better to wait. Secondly, building up a decent credit rating and allowing the bankruptcy discharge to be less recent will improve the mortgage offer you can get. Thirdly, you only need one supposed "friend" to notify the official receiver that you have bought a property and end up with the hassle of an investigation; not saying you've done anything wrong but its a hassle you can do without, particularly if your health is poor.

robert71

Hi, I am new to this forum and I think this debate is really interesting. MSE is about the individual, but as more people become bankrupt, creditors have to make great debt provision and this impacts what everyone pays in fees. In this case (and in fact most) I think it's wrong to judge anyone as, we don't know the circumstances and even if they're not great, I think most of us have made mistakes. Speaking personally, my duty is to me and my family, and if you can go though bankruptcy and come out the other side with a small windfall that makes life a little easier - that's great.

robert71

Good advice on waiting to get a mortgage. The deals you'll get in the first 6 years will be painfully expensive. You'll need to do things that improve your credit rating like getting a crazy APR credit card but paying it off every month without fail. There are stories out there where people have got a normal credit rating after bankruptcy, so good luck.