Will I ever get a mortgage?

NicciJB

I was declared bankrupt in 2004 and discharged in 2005. I am living in a Rent to Homebuy property where I rent for the first three years and am then given the option to part-buy via shared ownership.

I want nothing more than stability in my life and would love to spend the rest of my life in the property I am living now. Will I be able to get a small mortgage in three years time to realise my dream? Or will I have to rent for the rest of my life - and have to move again in three years when I can't get a mortgage

Tinytim

NicciJB

Even in todays market there should be nothing to stop you getting a mortgage in three years time, all else being equal. If the situation is the same as today, you will need a deposit of at least 15% of the share, and obviously income etc will have to meet the lenders criteria. As the discharge will be more than six years away, a number of lenders will consider lending. Your biggest problem is likely to be lack of choice - currently there are only a handfull of lenders in the shared ownership market.

Pammybun

Hi

Our mortgage broker (and landlord) said we would have no problem with shared ownership mortgage when we get discharged.

We are in Scotland but I do not think in those circumstances that would make a difference. With shared ownership the risk is less. You advised us we could get a 100% (of a 50% share) through shared ownership, however if you have some money to put down then even better.

Shared ownership is becoming increasingly popular and there are more lenders with this. A mortgage broker would be the best person to speak to.

Pam

Pee

It is possible that lenders will tighten up on this. If they are going to be more cautious about lending in future, this might be one of the considerations they will take into account. That said, if you have a record of regular savings for five years towards a deposit, as big a deposit as possible and no other debts any "points" knocked off for the bankruptcy will be made up in other ways.

Good luck!!

Tinytim

Pammybun wrote: »

Hi

Our mortgage broker (and landlord) said we would have no problem with shared ownership mortgage when we get discharged.

We are in Scotland but I do not think in those circumstances that would make a difference. With shared ownership the risk is less. You advised us we could get a 100% (of a 50% share) through shared ownership, however if you have some money to put down then even better.

Shared ownership is becoming increasingly popular and there are more lenders with this. A mortgage broker would be the best person to speak to.

Pam

What you say is true up until about two months ago, but the only lender left who will lend 100% as far as I am aware is Cheshire Mortgage Corporation who are part of Blenheim Finance, and rates start at just under 11% rising to nearly 13% after a year with a seven year tie in. Ipswich Building Society still do 95% but virtually all others are 85% or less (of share). The other problem area is new build, especially flats, but this won't apply if the same property has been rented for three years previously.

NicciJB

Thanks everyone - my next challenge will be saving a substantial deposit. I live on my own so not much disposable income left after I've paid everyone!! :-/