husband discharged bankrupt- mortgage

sazziecee

Hi

My husband was discharged from bankruptcy in September 2010.

We would like to move house in about 3 years as had a new baby and space is a bit tight now.

I just checked MY credit score and its 999. But I am not earning at the moment as I am on maternity leave and only get MA. Husband earns 24k gross, we live in the north and I have about 40k equity in my house (in sole name)

Would our credit ratings balance eachother out at application? or is it likely to be a big fat X?

He has ordered £50 of goods from a catalogue to start to rebuild his history and is thinking of a high interest credit card and using it for petrol and paying it off in full every month.

Anything else we can do to help?

Thanks

NeverAgain_2

The mortgage lender will view your application as a whole, so don't get too hung up on credit scores.

The credit score company doesn't lend you the money, the mortgage company does that.

I take it you expect to be back at work when you make the application.

That will go much in your favour, as will the amount of equity you have to carry forward into the new place.

You already have a mortgage, so it's much easier to get one for the next house than it would be if you were applying from scratch.

Assuming you intend to make an affordable application, I think you have every chance of success.

capeverde

think you will struggle with the high st banks, but there was a good thread on here before on the subject showing which companies were willing to discuss the proposition. We discussed a mortgage with LLoyds recently and are fortunate to have an 80% deposit so we only needed to borrow 20% LTV yet were turned down flat because I was a discharged bankrupt. This is simply a no common sense approach as the deal offers zero risk to the bank and they can get away with charging a couple of points over their normal rate. Cant reinvent the wheel though so you have to change tack and try someone else.

philnicandamy

this may help a little

how to get a mortgage after bankruptcy

You too can get a mortgage after bankruptcy.
I have just bought a house for £250k after being declared bankrupt in April 2005. Conventional wisdom that Bankruptcy ends your chances of ever getting a mortgage is just not true but there are some golden rules to follow.
If you want to know how I did it, read on.

Golden Rule One – Sort your life out.
I’m not here to judge, I went bankrupt through a combination of bad luck, greed, laziness and burying my head in the sand. The important thing is learn from your mistake.
Since then my wife and I have been pretty much perfect customers, pay all your bills on time, live within your means. When you can get a credit card use it but pay it off every month. I used mine just for petrol and paid in full as soon as the bill came in. when the time is right apply for catalogues and do the same. You need to rebuild your credit footprint by getting the low end low value lending and making the most of it.
We owned a house and my wife had to get a loan from the bank to buy out my half of the interest in it. We scrimped and paid that off in half of its planned term. It was not easy but it hugely increased her customer score at her bank.
Likewise I left lots of money in my account as long as I could to look like a stable character.
Do your life laundry; cut your outgoings, find bargains, it all helps. Check your credit file with a fine tooth comb. Make sure that each lender shows your account as settled or partially settled and with the settlement date as the date of your bankruptcy discharge. I had several that had either not put it as settled or had it showing as settled years after discharge. This has the effect of making you look as though your money troubles have continued since bankruptcy and will make any financial institution give you a very wide berth. It can be difficult to get it corrected but persist using all the advice on the rest of this site as it is essential.
Final tip here if you owed a lot of money when you went bankrupt you probably had PPI. I had a loan from my bank pre BR which they said I had to take out PPI for or they wouldn’t let me have it. When I complained to the Financial Ombudsman I got £3,000 back which enabled me to replace my car when it died without having to borrow money.
So rule one, sort your life out. If you haven’t done this, don’t even bother with the rest.

Golden Rule Two: Persist
I went to a broker on a personal recommendation; someone who purported to be experienced in my kind of case. He told me I had no chance and would have to wait at least another year and even then wouldn’t be able to afford a house at more than £200k. (His name was Jon Shaw from Positive Solutions – don’t even bother)
A good friend of mine told me not to give up but to phone around mortgage companies myself. I phoned as many as I could find. In the end I phoned 84 different mortgage providers and 18 said that they would consider me. I have listed them at the bottom but you have to do it for yourself. They judge it on individual circumstances and they change their policies all the time.

Golden Rule Three: Do your research

At this stage don’t give your real name (you don’t want to leave footprints and some of them will want to do a soft search on you.) but be completely honest about everything else. First explain how long you have been discharged and your position and ask whether they will consider you. If they say yes then you need to know what their lending policy is. Some still do multiples of income, most say they base in on affordability the reality is that they are all different. Some will give you a formula, some will ask you for your details and then say how much you can borrow without telling you how it is worked out, some won’t go that far without running a credit check.
The next stage is to ask how they assess customers. Some do a hard computerised credit score. This is likely to be a problem for you. Firstly you have an adverse history so it will probably knock you out, second it will record a visible search on your file. If you apply for a mortgage and another lender searched you two weeks ago then the second lender can be pretty sure the first one said no and mark you down for it.

Other lenders use a combination of scoring and other techniques. If you have an account with a lender already they will take into account your customer score which is internal to that institution.
For me, the best bet was to go with a building society that didn’t score at all. Instead they got full credit files for myself and my wife and went through them with a fine tooth comb. They also went through bank statements, payslips, everything. They raised lots of queries, wanted to know what certain payments were for. The bottom line is that a human being came to a judgement about whether I had sorted my life out and decided I had.
Everyone is different though and so what worked for me might be different for you. Try to get the people from the lenders talking, explain what you are doing. Some will be friendly, some downright snooty and rude. The friendly ones, however, can give you some really useful information.
Don’t go with the first one you find. Go through all the lenders you can find and then make us a short list. Prioritise them. If necessary ring round again and get further details.
Ultimately you will get down to a handful that look really promising. Then decide who you are going with. It can still break down even at this point. I didn’t get a mortgage with the provider at the top of my list and you might not either.
Golden Rule Four: Don’t ever give up!!

You are then faced with an agonising time of sending information back and forth but hopefully it will be worth it.
I moved in October 2010. I earn about £45k a year. I bought a house for just under £250k on an 80% mortgage; the other 20% came from equity in the house I already owned. i'm now paying £1021 a month for my mortgage.
Getting a mortgage is not easy after a bankruptcy but if you get yourself sorted it is possible so don’t give up.
The lists of those I rang and those who said yes are below BUT EVERYONES DIFFERENT SO YOU HAVE TO DO YOUR OWN RESEARCH

If you want to know any more, just ask.

Good Luck!!
The people I rang were:
Royal Bank of Scotland
Cheltenham and Gloucester
Halifax
Manchester Building Society
Yorkshire Building Society
Abbey
One Account
ING Direct
HSBC
First Direct
nationwide Buiding Society
newcastle Building Society
Scottish Widows Bank
Barnsley BS
Cambridge BS
Chorley & District BS
Coventry BS
Natwest
Britannia
GMAC
Mortgage Express
accord
aldermore
alliance and Leicester Direct
Bank of Ireland (NI)
Bank of Scotland (Mortgages)
Beverley
BM Solutions
Buckinghamshire Building Society
Chelsea BS
Cheshire BS
Clydesdale Bank
Cumberland
Darlington BS
Derbyshire BS
Direct Line
Dudley BS
Dunfermline BS
First Active
Furness BS
Hanley Economic BS
Intelligent Finance
Ipswich BS
ITL Mortgages
Kensington
Kent Reliance BS
Leeds BS
Leek United
Legal & General Mortgage Club
Lloyds TSB
Loughborough
Mansfield
market Harborough BS
Marsden
Melton Mowbray
Monmouthshire BS
National Counties BS
Natwest
Newbury BS
Northern Rock
Norwich & Peterborough BS
Nottingham BS
Pink Home Loans
Platform
PMS
Post Office Ltd
Principality BS
Progressive BS
Saffron BS
Scottish BS
Shepshed BS
Skipton BS
Stroud Swindon BS
Teachers BS
Co-operative Bank
Mortgage Works
Tipton & Coseley
Vernon
West Bromwich Building Society
Woolwich (Barclays)
Yorkshire Bank
Bath investment and BS
Chesham BS

The ones that said yes were:
Norwich & Peterbororgh
Saffron BS
/skipton BS
Tipton & Coseley
Cheltenham and Gloucester
Halifax
Manchester BS
Yorkshire BS
Barnsley BS
Cambridge BS
Coventry BS
Clydesdale Bank
Dudley BS
Furness BS
Kent Reliance
Leeds BS
Leek United
Mansfield

　
　

tigerfeet2006

Also get him to do a clean up on hos Credit Reference Files as per the sticky.