Has anyone tried to obtain a mortgage after Discharge?

toothfairy1983

Hi all!

I recently am discharged from bankruptcy after 1 long year!

I just wondered if anyone has managed to succeed in obtaining a mortgage and who did you go with?

Lost2

I think you would have to wait about 6 years for your credit rating to clear
but am not sure

dvs

Think if you do get offered a mortgage, it will be at a much higher rate than the 'typical' customer. If you have a trusted family member or friend, it might be better to see if they can help you obtain a mortgage.

philnicandamy

I've heard of people 2yrs+ after bankruptcy obtaining a mortgage.....BUT as DVS said it will probably be at a much higher rate than normal.....either way it'll be difficult enough in the current financial market

ladylumps45

my friends other half before they got married went bankrupt and was discharged 6 months later.within a year he was added onto her mortgage.not sure if its the same being added as taking a mortgage out tho.

fiveyearplan

Before this current financial mess the whole country has found itself in it was relatively easy for a bankrupt (not just discharged!) to find a mortgage. You just need to know where to look. Unfortunately not sure you'd get one now but I'm sure banks will have short memories and will be back to their old practices.

abinitio

I spoke to a very helpful independant mort broker a few months ago and posed this question. He reckoned before discharge would be expensive but after discharge, especially a year after discharge it would be easy to get a decent rate. Though he did say currently no one is really lending at all unless you're putting at least 30% deposit down.

sgt.tibbs1977

After six years the bankruptcy falls off the end of you credit report, however, on mortgage applications you may get asked if you have ever been a bankrupt or insolvent person, in which case you will always have to answer yes. In may make it more difficult for you to get a mortgage or some of the better mortgage deals. I would reckon at the moment it would be difficult to get any type of mortgage for a former bankrupt but when things improve I reckon there would be times and certain circumstances that would improve your chances of getting a mortgage deal, even within the prime lenders.
Would be interested to hear what a mortgage adviser would have to say on this matter, which unfortunately I am not.

dvs

Not looking good. The Guardian reports today that a woman with defaults on her credit card from 2004 (which has now been paid off) was offered a mortgage with a rate 12.75%, discounted to 10.75% for the first two years. She earns a good salary, was up to date and wasn't a bankrupt. :eek:

Guardian article: Mortgages: How just one bad debt can send your loan chances into freefall.

k2nga

There will always be companies offering silly rates. So the best advice would be to try and find a decent broker that can hunt out the best deal. Im sure once we start to get the countries finances back on there feet the deals will be out there.

Panda2_2

Hi we got a mortgage after a bankruptcy discharge. We got it 6 years after bankruptcy hearing, but we first built our credit rating up with a high rate credit card for about 9 months before applying. We then saw an independent financial advisor who was an all of market mortgage advisor. The Northern Rock gave us a mortgage i know they subsequently went under but we still have our mortgage with them and our repayments are less than when we took it out. The mortgage rate was normal not increased.