Refused a Mortgage due to bankruptcy, any ideas please?

Zaychik

Hello, first time I have done this but it has been recommended to me as a good place for advice.

I unfortunatley made myself bankrupt 6 years ago this march gone, I have been discharged from bankruptcy for 4 years also. And this has now come off my credit file which is now clean. Since the bankruptcy my credit file has been perfect with no wrong doings.

Well, with the 6 years to clear my credit record now past and the housing market doing what it has I decided that this was a good time to buy my first house. I researched what was out there and what was available to first time buyers. I finally settled on a government funded scheme called "Ownhome". That went all well and good, followed their instuctions, jumped through all the hoops, then went out and found a property as requested. Got the funding secured from the Ownhome people and got a mortgage approved from the Co-operative bank.

All well so far... well, then i get a letter through the post from the Co-operative telling me that they would no longer be able to offer me a mortgage. I phoned the to ask why and was told that I hadnt been discharged from bankruptcy for long enough to qualify for a mortgage with them! This wouldnt be a problem as I have had mortgages agreed from several major banks before I applied with Ownhome apart from the fact that they require the mortgage to be taken out with the Co-operative bank.

So what i am asking is, if anyone out there has any advice on how i could get the Co-operative to reverse their decision?

Please help, thank you!

tigerfeet2006

You probably won't be able to get Co-op to change their minds I am afraid.

How much of a deposit do you have?

Zaychik

with the government funding it adds up to 40% in total

obewan

Zaychik wrote: »

with the government funding it adds up to 40% in total

Try Beacon Home Loans - via an Independent advisor.

Tinytim

Beacon can't do "Ownhome", it is specific to Co-op, and there is no chance of them changing their mind. However, if you have a deposit of at least 15% (own money) Nationwide will normally consider you three years after discharge, and will also lend on approved shared ownership schemes (but avoid new build flats)

Walter_J

I would treat this as excellent news.

House prices will almost certainly be a lot lower in a couple of years time, by which time you will have a bigger deposit and should be able to get a mortgage without difficulty.

The big fall in house prices has yet to come. Check out the progress of the last house price crash in the early 1990's. It took five years from peak to trough. There is absolutely no reason to think that it will be any quicker this time round - and we are less than two years in!