Obtaining a mortgage post bankruptcy, advice please.

JPS29

Hi.

Due to loss of a major contract my business failed and I had to declare bankruptcy over 3 years ago. I now have another business which has been running for just over 7 months and is going well. My eggs arent in one basket as I can source my products from numnerous places/organisations and still make a tidy profit.

My question is this.

I currently live in a 5 bed detached worth £250+
I have one BTL worth circa £60-70k
I have one BTL in a ltd company owned by myself and my partner worth circa £125.

Pooled between them there is prob about 60k in equity but I dont want to touch any of that.

I would not try for a mortgage now but would like to when I am 6 years post bankruptcy and it is no longer on my credit file. I know I will still have to declare it when asked but my inital credit score should be better than then, and also its 6 years of no missed payments on any of my credit accounts.mortgages.

I currently have £30k saved towards a deposit and would like to purchase a semi rural property with some land for our next and final home. We have seen one sold recently for £400k so this is our ball park figure.

In the next 2 years I will have saved £90-100K as a cash deposit. Would it be possible for me to get a mortgage at that point, and if so what steps should I be taking in the meantime to make it more accessible. Ie, Rather than legally using tax avoidance should I be making the business show as much profit as possible in the meantime or would it not make a difference.
If you've got this far thanks for reading and I appreciate any help/advice

JPS29

Anyone please?

GMS

It is impossible to say what will be happening in the mortgage market in 2 years time.

Once bankruptcy has been discharged there are lenders available. 1 lender will do 50% LTV on the day of discharge, with others increasing LTV in line with time discharged.

Income wise you need to be showing as much as possible ideally for 2 years minimum with accounts and/or accountants reference as proof. Work on 3 x income as a ball park figure so 100k profits needed for 400k purchase with 100k deposit (as a rough guide)

If property prices increase then the income will need too also.

Earn as much as possible and save as much as possible in order to have the best chance, but by the time it comes to it who knows where the market will be.


Good luck

JPS29

Thanks very much for this. I just wanted an idea as to how to improve my chances and this has pointed me in the right direction. I'll aim to have the business showing as good a profit as possible then without being clever with the tax (short term pain/long term gain I guess) I already use a chartered accountant too so a ref wil be no problem, Ive been with her for the last 6 years.

Thanks again