bankruptcy and mortgage

Mollybilly

Due to failed business, credit crunch etc both myself and my husband have previously declared Bankruptcy. We are now in a much better position and want to know that given the following circumstances what are chances may be of getting a mortgage to allow us to buy a house that is adapted for a disabled child.

Husband bankrupt 2002
Me May 2007
House in lots of negative equity given up voluntarily for repossession in Feb 2009 which was included in bankruptcy.

Credit files cleaned up

Outstanding debt £0

Deposit £55000 (£45k built up through savings, 10k inherited)

Income
Me £18000
Husband £52000 (this is through fostering though so not all will be taken into consideration by banks I am aware - the amount he is taxed on is £18000 if this makes a difference)

We want to borrow £165000

Any advice would be appreciated.

opinions4u

I'm not quite sure how the Credit Crunch contributed to bankruptcies in 2002 and 2007.

Cutting to the chase, you're not going to get a mortgage for years.

Sorry.

lindsaygalaxy

If u only gave up your house in 2009, how do you have 52k in savings?

callmechar

Wow did the OR know you had managed to save all of this?

holly_hobby

Ok ...

Your first prop was essentially repossed in 2009, and you had the 1000's of neg equity on sale included in the BO - well played !!

You now in 2011 want to re-enter the property market.

Q 1 - Was "voluntary" repo recorded by the lender .. have you checked your credit records with CRAs ?

Secondly, lets assume (for fun) that you were not registered by your ex lender as a prev repossessed (because if you are & an ex bankrupt you're really struggling), you need to be discharged from you BOs to even be considered at all - which I assume you both have been.

Secondly (and notwithstanding the repo issue), there are 2 types of lenders who consider ex-bankrupts:-

a - Those who are both discharged and have repaid their creditors (i.e the good guys who have shown financial responsbility to their creditors even if the BO has expired)

b - Those who are simply discharged bankrupt

There were before the credit crunch - some high st lenders who did consider ex BOs with unsatisfied orders - they may or may not still accept such business with a suitable deposit.

AFAIK you are treated as self employed as Foster carer - so you will need 2/3 yrs audited books, or HMRC proof of income tax.

You really need the assistance of a whole of market mge broker on this, as you have 2 BOs & a poss ex repo on the books too ... but you do have a decent deposit. (poor old ex-creditors .. if only they knew !!)

Anyhoo, its not for me to discuss moral issues, but to give assistance where I can, speak to a broker, he should be able to tell you form the outset if there is any merit in continuing your mge hunt, and if there is, well he will be best placed to source the most suitable lender and product for your requirements.

Hope this helps

Holly