how to get a mortgage after bankruptcy

Eve1975

That is interesting about the new buy scheme. Who is the mortgage through that said yes?

We will havea big deposit but when I spoke to someone today they said I would find it hard to get a mortgage through this scheme beinga bankrupt.

We could get a new build worth £249,995 if we could get someone to do a mortgage for it.

Also advised the interest rates are higher on this scheme?

I haeve only spoken to one financial person regarding this and she was not very up on bankruptcy as she said my partner would need to get a mortgage alone without me due to my past. I put her straight and said no that is not the case.

iaanhayden

Double-check that your borrowing report is accurate. numerous liabilities are swabbed clean in a bankruptcy, and you need to make sure that your credit report reflects this. when any person applies for a mortgage - if they've filed for bankruptcy in the past or not - their paid work annals is scrutinized.

droiderm

Eve1975 wrote: »

That is interesting about the new buy scheme. Who is the mortgage through that said yes?

We will havea big deposit but when I spoke to someone today they said I would find it hard to get a mortgage through this scheme beinga bankrupt.

We could get a new build worth £249,995 if we could get someone to do a mortgage for it.

Also advised the interest rates are higher on this scheme?

I haeve only spoken to one financial person regarding this and she was not very up on bankruptcy as she said my partner would need to get a mortgage alone without me due to my past. I put her straight and said no that is not the case.

It's through Nationwide.

They consider ex BR's after 3 years, but mine is off my file now. I did declare it as part of the Decision in Principle application.

The 5 year fixed for Nationwide NewBuy is around 4.74, less if you take a lower fixed period.

BR is difficult, but it looks at least possible (for now). Make sure your credit files are squeaky clean, and your bank statemets are fine, and manage credit perfectly.

I do bank with NW , maybe that helps.

Eve1975

Mine is 6 years in June so will be off file in June. Credit score at present is 865 (so fair).

I have been in contact with Yorkshire Building Society who can do a 5 year fixed for 2.59% but this is not for this new build. Have not gone through the application stage yet but just spoken to them and they do not have an issue with bankrupts after 36 months.

My bank statements are fine and have a clean slate since bankruptcy. Nationwide was mentioned as one that do deal with bankrupts but not spoken to them yet.

droiderm

You can't compare an interest rate for a 95 percent mortgage with one for 50 percent or whatever .

moonlice

Just want to add my experience into the mix. I went bankrupt in 2009, Discharged 2010. I have had a massive battle to clean up my credit report but finally its all as it should be. I then started to look at mortgages.

I have a good wage, 20% deposit and some credit via mobile phones, Next etc all kept in good order. Halifax said a point blank no due to active defaults (even though my credit file is clean!). I then asked Norwich & Peterborough who told me that they may consider me 3 years after discharge. I went through all the questions but then it was refered to the mortgage underwriters. They came back with a point blank no!

I have one more chance later on in the week with Nationwide but I have had all my hard work and confidence knocked out of me. I hate this culture of "computer says no" without getting the details of the situation.

My big worry is that due to advice from the bank after my bankruptcy we gave up the house voluntarly. It is seeming like if we had waited for the house to be repo'ed it would have been preferable!

I know bankruptcy comes off your credit report after 6 years but I know some banks now are asking the question "Have you EVER been BR?".

I am at the end of my tether. I went BR because of bad advice from the banks, i went through BR thanks to bad advice elsewhere and now everytime I feel im getting somewhere, the goalposts seem to move.

My only hope is that I have heard that Nationwide look deeper into your situation..... im not confident. I shall report back.............

louiseca

Hi

Moonlice - Myself and my husband went bankrupt in 2009, discharged 2010. We were keen to move and have a large gifted deposit of £100,000. We applied via a broker to Nationwide in April and computer said no. I still had 2 active defaults on my credit file which, before we applied, Nationwide had said wouldnt be an issue as long as they were ones from the bankruptcy which they were. We have had no other issues since bankruptcy and both have credit cards now to rebuild our credit rating. We also kept our house and never missed mortgage payments either.

Anyway, I spent the last 2 months chasing those last 2 creditors to update my file. They finally did so last week and I put another application into nationwide - direct, over the phone this time. Again, we were declined immediately due to adverse credit bureau information!

Feeling that I had nothing else to lose I then phoned Yorkshire Building Society who had also been recommended as bankruptcy friendly. Put an application in over the phone, immediately referred to underwriters and within 24 hours our Agreement in Principle was confirmed.

I am delighted. It has been a long process but hopefully worth it.

I couldn't recommend YBS highly enough. Not just because they accepted us but every single person I spoke to was helpful and the decision was very speedy. Was told if it was referred with Nationwide it could take up to 2 weeks for a decision. Not so good for your nerves!

Best of luck, hope you manage to get something.

Louise

Eve1975

That gives me hope then. We are looking at YBS and Nationwide. I have spoke to YBS but they are quite tight as to what they lend. We will have around £100K to put down once boyfriend sells his property. I am 6 years clear this month, but reading your story gives hope.

BRB-79

Ox1987 wrote: »

So is it possible not only to get a mortgage after BR but also what about after a repossession as well.

I was wondering the same thing. I had a mortgage that became part of my BR in August 2009, discharged April 2010. The mortgage firm sold the property at auction and there was a 30k shortfall as there was a looking bill for a lease extension that devalued the property. They came after me for the 30k but the OR quickly confirmed it was not payable to them.

I have a sizeable deposit now and me and my partner are looking to buy the shared ownership place she already has 25% of in the next year. I read about this new sub-prime mortgage that came on the market recently at Magellan Home Loans and I tick all their lending criteria on paper but they haven't mentioned about BRs that included a property/mortgage as being a firm No.

Anyone had experience of getting a mortgage after giving one up in BR previously ?

tom1984

I've just had my formal offer issued by the nationwide thru their save to buy account, the LTV was 95% and I was discharged jan 2008. Keep your hopes up people!!