mortgage for discharged bancrupts

loulou73

hi can anyone tell me if they know about mortgages for discharged bancrupts thanks

maninthestreet

Why is that a bankrupt doesn't know how to spell the word correctly??

GMS

When was the bankruptcy discharged?

What is the Loan to Value?

Burridge60

They are available but your credit history must be excellent since the bankruptcy as they are going to credit score your application. If the Bankruptcy was preceded by defaults and county Court judgements it is these and not the bankruptcy that will affect a lenders ability to lend to you. If they are still on your file then it is unlikely you will get a mortgage until they fall out of reckoning (normally six years).

Don't expect the big names to be able to offer you anything Barclays/Woolwich and Abbey/Santander definitely wont want to know. Criteria in both cases specifically excludes discharged bankrupts.

Also beware that the search for Bankruptcy is carried out by the Solicitor as one of the last things before asking the lender for the the money for your purchase and is not something that a normal credit search would pick up. I would suggest you be very upfront about it as to lose your mortgage when you are that far down the line would be a very costly lesson to swallow.

loulou73

thanks for your advise(not the one bout the spelling lol)been discharged 2 years,had no ccjs prior as was a voluntary bankruptcy,thinking b out 100k if possible.

GMS

What kind of deposit/equity do you have?

On_the_up_2

I thought that the solicitor only carried out a bankruptcy check on the Vendor?...to check that the property is theirs to sell, have I been misinformed?

loulou73

not alot really bout 5k at mo

GMS

A 95% LTV mortgage is difficult to obtain when credit rating is squeaky clean. Impossible with a discharged bankruptcy.

Meeper

On_the_up wrote: »

I thought that the solicitor only carried out a bankruptcy check on the Vendor?...to check that the property is theirs to sell, have I been misinformed?

I'm afraid so.

Foxy-Stoat_3

Agreed with the "upfront" bit. Even if the BR has fallen off your credit search, theres a question on the mortgage application form about IVA's and BR's. Answer that wrongly and they find out, which they will, you will be comitting mortgage fraud. You would of paid application/valuation fees at this point, so you will lose these as they will not approve your application.

Best to get a whole market broker on board after you do a credit search yourself and "clean up" any nastys if they are still on there.

Expect to pay a lot in set up fees, interest rates and at least a 20-25% deposit, otherwise keep saving!

We have nearly got our mortgage approved, I have been off my IVA for a year:
Set up/valuation/charges fees £3000
Interest rate 9% variable - interest only
Combined annual income £48K
House value £150K
50% gifted equity
LTV 50%
Deposit £30K
Mortgage £45K

See what I mean, zero risk for the lender, but massive reward !

Keep saving, you will get there.