No longer Bankrupt stuck in the rental market

cardifftaxi

Hi,

Following a failed business and bankruptcy I am now back on my feet as a Cardiff Cabbie. My bankruptcy has recently been discharged and for the first time in many years I am earning more than what I am paying out!!

I am looking for inspiration really on how to get out of a rented house and start a fresh buying a property (renting seems such a waste of money).

What would be the first steps for buying a property after being discharged from bankruptcy??
Will I need to build a credit rating to get a mortgage??
Any help or ideas would be greatly appreciated.

Thanks in advance

CardiffTaxi

silvercar

First step is to save a deposit.

Running_Horse

First step is to enjoy a relatively care free existence for a while; my dad went bankrupt and I know how terrible it can be. Once you have saved a bit of a deposit, you will probably know exactly what to spend it on. Life is not as sprint race. Rushing into home ownership on a whim when you can't yet afford it could prove a very costly mistake.

cardifftaxi

Sorry forgot to mention I am already doing this. I am looking with advice with regard to credit/mortgages more specifically and if the bankruptcy will cause problems.

Thanks

cardifftaxi

Running_Horse wrote: »

First step is to enjoy a relatively care free existence for a while; my dad went bankrupt and I know how terrible it can be. Once you have saved a bit of a deposit, you will probably know exactly what to spend it on. Life is not as sprint race. Rushing into home ownership on a whim when you can't yet afford it could prove a very costly mistake.

Thx Running Horse, I agree with your points. Though I can now afford to buy, especially considering I am paying £700 per month in rent! It just seems such a waste...

Fire_Fox

cardifftaxi wrote: »

Hi,

Following a failed business and bankruptcy I am now back on my feet as a Cardiff Cabbie. My bankruptcy has recently been discharged and for the first time in many years I am earning more than what I am paying out!!

I am looking for inspiration really on how to get out of a rented house and start a fresh buying a property (renting seems such a waste of money).

What would be the first steps for buying a property after being discharged from bankruptcy??
Will I need to build a credit rating to get a mortgage??
Any help or ideas would be greatly appreciated.

Thanks in advance

CardiffTaxi

Firstly you need at least 10% deposit, possibly more as you may be deemed higher risk and lenders are very twitchy in an unstable market. You also need sufficient money for legal fees, surveys etc. plus at least three months mortgage payments should you fall ill or injure yourself and be unable to work.

Also check the records held by all three credit reference agencies are accurate and work on improving your credit rating:
http://www.moneysavingexpert.com/loans/credit-rating-credit-score
I'd be inclined to dip my toe in the water with a mobile phone contract or tiny overdraft, I would have thought a failed application for that would look better than a credit card.

Paying rent is not necessarily a waste - had you bought in 2007 you could easily have been in negative equity now, with renting you haven't got yourself into debt. Do you really need a £700 property, could you not downsize or move to a cheaper area in order to save up more quickly?

VIGILANT22

cardifftaxi wrote: »

Sorry forgot to mention I am already doing this. I am looking with advice with regard to credit/mortgages more specifically and if the bankruptcy will cause problems.

Thanks

Most lenders now say bankruptcy must be discharged at least 4 years prior to application.