Mortgages for discharged Bankruptcies of 10 years

nikkivb

Does anyone no where you can get a mortgage for a discharge bankruptcy. I went Bankrupt 13 years ago and I am self employed with 4 years accounts is there any good mortages out there. None of the main banks will allow this now and I have a good credit history.

nervousmother

I would guess they are more afraid of you being self employed lol. Your best bet would be to see a mortgage broker (if any are still in business)
Good luck and let us know how you get one.

tigerfeet2006

Also having a really good deposit helps, 20% minimum at the moment I think it is.

fiveyearplan

See an independent mortgage advisor. If you have a deposit and good credit you should have no trouble obtaining a mortgage at a decent rate.

property.advert

Does anyone have any true experience or knowledge of the long term effect of BR on a mortgage application ?

inmypocketnottheirs

If you were discharged 13 years ago then this would not show up on your credit report.

tigerfeet2006

It won't show up on the credit report but mortgage co.'s have access to a seperate list at the Insolvency Service which they check to see if you have ever been BR and I also think they can check if you have ever been vol. repo'd/repo'd

There is usually a question on the forms that asks if 'you are or have ever been bankrupt?' You have to answer truthfully but there are a few on here who have got mortgages after BR or who have re-mortgaged.

fiveyearplan

I've done some 'light' research recenlty and all I could see was mortgage companies asking for past 7 years. I'm sure some ask for a longer period but thats what I've found recently.

I have a friend who is a mortgage broker and although I haven't spoken to him since this latest financial fiasco (the global one, not mine!) he never had any trouble getting BRs (not even discharged in some cases!) a mortgage. I'm sure this isn't the case at the moment but I don't think it would be much of a problem for someone who has been discharged for over 10 years. A repossession would look worse from a mortgage lender's perspective.

treading_carefully

Before completion the solicitor will check the Insolvency Register and report findings to mortgage company. As long as questions are answered correctly and it is within criteria of mortgage company then you should be fine. Council of Mortgage lenders also keep a register of repossessions which can be checked. It may be different in current climate but mortgage companies used to be fine if you were discharged more than 3 yrs.

Tinytim

computershack wrote: »

The mortgage problems have nothing to do with your bankruptcy. When I remortgaged 4 years after discharge, the mortgage companies said it wasn't even considered. S/E is most likely the biggest obstacle due to so many self certs. who defaulted.

I'm sorry, but you are almost totally incorrect in this :rolleyes: Firstly, the increase in the default rate on true self-certified mortgages has not been any greater than for full status. There has been a marked increase in default for full status high LTV loans, and fast track loans. True self certified mortgages did not account for a significant percentage of the market, and there are currently none available at all.

When you remortgaged, your bankruptcy would have been taken into account with all lenders (who credit score), regardless of what you were told. The simple fact is that there are very few people in a lender who know what is included in the credit score algorithm, as it is very commercially sensitive. Even on the basis of basic criteria, there are many lenders such as the Woolwich who have a minimum of five years discharged. Some, such as the Nationwide advertise potential acceptability three years after discharge, but usually find some other excuse (such as low credit score) to decline.

The vast majority of lenders will not differentiate between a full status self-employed application and a full status employed application. In fact, a self-employed plumber is likely to be more acceptable than an employed worker in a car factory due to the percieved stability of the occupation. There is no difference between the deposits required for a self-employed worker or an employed worker either.

Where the self-employed do have difficulty is where their accounts submitted to HMRC have been produced with a view to minimise taxation. Therefore, a self-employed mobile mechanic working from home would have been able to offset a proportion of his household expenditure against his income before arriving at his taxable income. The employed mechanic would not be able to do this, and so would be taxed on a higher amount. When apply for a mortgage, the benefit becomes a liability as the self-employed mechanic appears to earn less on paper, and would therefore qualify for a smaller mortgage. In reality they both earn the same, and have the same expenses.

Self-employed does not equal self cert, and as many self cert mortgages have been taken by employed peole as self-employed

treading_carefully

Being self employed is fine as long as the income as declared to HMRC is sufficient to get the loan you want. Good point raised above that the lenders scrutinise occupations more closely. Put simply if my occupation is a teacher it might just achieve a higher score than an estate agent or mortgage broker in the current economic climate.