Mortgages for discharged Bankruptcies of 10 years

philnicandamy

As we all know (connor) no two bankruptcys are the same what one person gets isnt always a guarantee someone else will...you were lucky simple as

dottydora

Just to add a bit of hope - my sister got a mortgage with co-op last year (about 6 months ago I think) and she had been discharged about 14 years. She had a fair sized deposit through a scheme for key workers though. If you or your other half are classed as a key worker this might be your way in, I not sure that excludes the self employed. If you want more details P.M. me and I'll ge the details from my sister.

Tinytim

computershack wrote: »

I'm sorry, were you present when I took out my remortgage?

No, but the information you gave was incorrect. Lenders credit scoring systems are commercialy sensitive, and the details are not known to staff. The algorithms used will take into account all entries on the credit file to a greater or lesser extent. This is when when an application is declined, lender staff are not able to give any more information than that it failed credit score (although they may sometime offer an educated guess).

In some cases, credit score algorithms are so sensitive that some lenders can tweak them to either slow down or speed up the flow of new business through the door.

Tinytim

dottydora wrote: »

Just to add a bit of hope - my sister got a mortgage with co-op last year (about 6 months ago I think) and she had been discharged about 14 years. She had a fair sized deposit through a scheme for key workers though. If you or your other half are classed as a key worker this might be your way in, I not sure that excludes the self employed. If you want more details P.M. me and I'll ge the details from my sister.

Hi Dora,

I am glad your sister got her mortgage with the co-op. I know that many of us love the co-op for allowing us useable banking facilities as BR's, but they are actually one of the best mortgage lenders out there. They also have some of the strictest underwriting criteria around, and so getting accepted is a great indication that the further back in history the discharge was, the less effect it has on an application.

As far as the key worker schemes are concerned, this may prove to be false hope Most key worker schemes are now included under the "Homebuy" umbrella which covers a miriad of individual schemes. Unfortunately getting accepted is the easy step. Funding for these schemes has always been sparse, and I know for a fact that those accepted on open market homebuy a year ago were told that nothing would happen until more funding had been made available. A good starting place is to go to www.homebuy.co.uk and click on the area where you live (or want to live). This will bring up details of the zone agent for the area, and they will be able to advise on qualification and what might be available. They will also explain the differences between shared ownership schemes and shared equity schemes, as they will almost certainly be the agents for both.

stanley38

are there specific mortgages for people who have unfortunately suffered a bankruptcy?

right now i am unemployed and the job centre is paying my mortgage

+50%pm extra on smi....... ...i am already 2 months ahead of schedule...

i would only presume youd get a mortgage if you have a 25%+ deposit..

anyway do you want the pressure anyhow?

---

:j:j:j:j:j:j

Tinytim

Hi Stanley,

Until the credit crunch there was a myriad of mortgages available to those with an adverse credit history, which included those who had been BR. In the main, these were offered by specialist lenders (a number of whom were owned by Lehman Bros) and the interest rate was decided by the level of adverse credit, whether arrears, CCJ's, defaults or bankruptcy (including IVA's), and how long in the past this was.

Almost all of these schemes have now dissapeared, and those that haven't offer worse criteria than some high street lenders who say they will at least consider an application three years after discharge. For example, Platform (part of Britannia) will consider a mortgage to a maximum of 65% 4 years after discharge or completion of an IVA. There is one particular lender who will lend immediately after discharge but the maximum loan is 50%, and the interest rate is more in line with credit cards than mortgages.

MicheH

I guess the message is save, save, save and by the time you're ready with a substantial deposit the years will have passed and the more years that pass, the better chance you have of getting a mortgage offer.

A mortgage offer is one thing but what are the chances of a discharged bankrupt of say 10 years obtaining a mortgage with a decent (not the best, I relise this) interest rate?

Tinytim

Hi MicheH

The majority of lenders will accept discharged BR's after six years, and there will be no difference in the interest rate between what is offered to Joe Public and what is offered to the ex BR. Lenders tend to be more touchy about any money they lost. For instance, Abbey will normally consider a discharged BR after five years on their standard criteria & rates. However, if part of the BR involved an Abbey account, then they are unlikely to consider an application ever!