Any chance of a mortgage

nixilix · 14 January 2012 at 4:17PM

My husband and I are looking to buy our first house. We are looking at the Firstbuy scheme (4% deposit, 20% equity loan and 76% mortgage). But may be in a position to buy without using scheme with help from the folks.

Only issue is husband was bankrupt in 2006, discharged 2007 with no issues since. We have a combined income of around £40,000. What would there be out there for us.

We have an appt on Thursday with a financial advisor but just wondering what position we are likely to be in

nixilix · 14 January 2012 at 5:07PM

does anyone have any idea?

ACG · 14 January 2012 at 5:19PM

Bankruptcy shouldnt be too much of an issue, how much is the purchase for?
Your generally looking at abut 4x your income, although it could be stretched to 4.5x or even 5x your income depending on your circumstances.

So you wold be looking at £160k mortgage to £200k at the most but you would need atleast a 10% deposit.

nixilix · 14 January 2012 at 6:21PM

we are looking around 130k - 150 max - would rather NOT use the firstbuy scheme cause that feels like a 100% mortgage (although i know its not) we feel its less risk buying outright. thanks for you response. i really thought the bankruptcy would be an issue. we only have outgoings of around 300 a month (excluding our household bills and rent)

ACG · 14 January 2012 at 6:30PM

Are those bills Credit cards/loans?
If not you wont have a problem. If they are are they will still in place for more than a year then that will be taken into account and amount you can lend would come down.

If youve got an advisor working on it then i wouldnt worry, they will find you something.

nixilix · 14 January 2012 at 6:44PM

Yeah one is a car loan and the other is credit cards but in my name. Thanks for you help. i was more concerned about even being considered than the amount!I will see how the appointment goes. thanks

izzywizzy2010 · 14 January 2012 at 9:44PM

Hi nixlix, i am currently in the same situation we have applied to nationwide via a mortgage advisor mid dec - we have been a the underwriting stage for the last week so are hoping to have our decison very soon

kingstreet · 15 January 2012 at 1:10AM

Do not be tempted to try to hide the bankruptcy from potential lenders. The solicitor conducts a bankruptcy search, normally just before exchange, and surprising your lender with an undisclosed bankruptcy (even one five years old) is likely to see your mortgage offer withdrawn.