Mortgage Dilemma

needalittlehelp

Hi all,

Just wondered if I could get some advice from everyone.

I have just been provisionally accepted for a mortgage – the search was done in just my name and I was declared bankrupt last year. My only concern at the moment, is that my partner wants to add their name on the mortgage application.

I am concerned about this, because it would mean we are both financially linked and this would hinder their chance in getting credit in the future.

Would this be correct?
What do people think the best option would be?

Thanks in advance for comments :T

fiveyearplan

If you've been provisionally accepted then that must mean you can afford it on your own, if it was me I'd get the mortgage on my own.

debtinfo

did they do the credit check before the bankruptcy, what are you using for a deposit, you might run into trouble before they do the final paperwork

So_Sad_Angel

Hi,

A decision in priciple is often given based on income affordability & deposit %.It is not a firm offer & done `subject to application`. Lenders often do this to get the customer interested before a full application is done.

When the full application is done you will have to answer the mandatory question on all mortgage applications -

......`have you ever been declared bankrupt or entered into any arrangement with creditors etc`

When application is completed & signed then the lender will do the relevant credit checks etc....credit checks are not done before the application stage as your signature is required to do them.

The application will then go to the lenders underwriters who will assess the decision if there is adverse credit info ...as BR will be I`m afraid.

Hope that helps. I would do the process in sole name & take it from there.

Angiexx

needalittlehelp

Just to give you more background to the situation- I went to mortgage advisor and told him from the off about my bankruptcy (but now I am discharged). He took all my details and photo copies of my discharge certificate and said he would search around to see if anyone would offer me mortgage. I also have a deposit of around 10k.

He called back today and said lender would be interested in offering me mortgage but only 85% LTV, so would need to find 15% as the deposit.

So on my part, I haven’t hidden any information and been upfront with everything.

Thanks for everyone’s comments

So_Sad_Angel

Thats great news....I know that lenders are becoming more aware now that BR actually means that you have more disposable income than if you were up to your neck in debt.

As an ex mortgage advisor I have seen both sides & I really do think that lenders need to open their eyes more.

Please watch the interest rate though & make sure that the fees are reasonable. Sounds like your broker is working hard for you.

I wish you luck. Please let us know how it goes.

Angiexx

needalittlehelp

Thanks Angie!

I know there is still a long way to go before I get the mortgage and like you mentioned I am going to be cautious about the interest rate.

Will keep you all updated on how things progress

debtinfo

needalittlehelp wrote: »

(but now I am discharged).

:o:o sorry i read your original post quickly and thought you said you were made bankrupt last week, not last year :rotfl::rotfl::rotfl: