Bankruptcy and Mortgages

mad1son2

I made myself bankrupt 4 years ago and now have a great opportunity to buy a Council house with a large discount, any ideas if this is possible and if it is where i should start looking for the best deals?

Many thanks

Andrew

izools

It might be possible, as long as:

You're stable - you haven't switched job / address / bank recently
You've cleaned up your credit file since banktupty - all the old defaults should show as satisfied and a default date of on or prior to the date of bankruptcy. Also so long as you have no CIFAS or reposession markers on your credit file.
You're registered to vote - and have been for a long time
You have no or little debt
You have built your credit history since, i.e. if you've held one or two sub prime cards used regularly since being discharged and handled these accounts responsibly
You haven't applied for credit of any kind recently

Have you checked your credit file recently?

holly_hobby

Hi

For a discharged bankrupt

You must obviously declare your bankruptcy from outset - to both your broker (if used) & obv in the mge application.
The Lender/UW MAY ask for the reason for bankruptcy & whom the creditors were (eg - they DO NOT LIKE to see Mr HMRC in there !!)
How long ago you were discharged
Some lenders - who will consider an ex-bankrupt - also want the bankruptcy to have been satisfied.

You may wish to consider involving the svcs of a local mge adviser/broker - as they will have both access and knowledge of which lenders operate RTB mges & also accept discharged bankrupts. This will save you a lot of leg work and time too. (remember though there may be a fee for their svcs, which on balance may outweigh the assistance given, or you could try an estate agency adviser whom normally don't operate a fee).

Hope this helps & good luck

Holly