Need some advice please

masterwilde

Hi there, i am starting a new job paying 45k pa

I was made bankrupt in 04 and discharged in 05, my credit file is clear with all green tics and have prime cards and such now.

My question is, would i be able to get a normal mortgage say in 12-18 months time on the basis of a 20-25% deposit on a 130k house?

I am scared as i heard all mortgage companies check the london gazette at standard to see if anyone has ever declared themselves.

many thanks in advance

ps bankruptcy was due to illness and in-ability to work

mic200202

Lenders just go by the credit search they do internally.Thats it.You may be asked if you have ever been made bankrupt at application stage.Answer is down to you.

If you were selling a property,then a bankrupty search would be carried out as part of the conveyancing process.

Speak to a broker.

ACG

I cant say what would be available in that time but i dontthink you will have any problems. There are 1 or 2 lenders that will offer a mortgage the day after your discharged (depending on your credit score etc), some ask you to wait 2, 3 or 4 years but you should be fine if you have a good credit score now.

kingstreet

A solicitor handling a conveyancing transaction carries out a bankruptcy search just before exchange of contracts. For this reason, it's always a good idea to mention a bankruptcy at the mortgage application stage, if such details are requested.

In the case of Halifax, there are no questions on the application form about any kind of adverse credit. You aren't asked about defaults, judgments, bankruptcies - nothing.

On the subject of bankruptcy, the Halifax criteria reads;-

Only if discharged and subject to a credit score

which means if it's historic and you can pass the credit score now, you should be okay.

If going this route, I'd still mention it to the solicitor right at the outset, so they can pre-empt any later enquiries from the lender when you've expended mortgage and search fees.

masterwilde

excellent, i was so so worried. i have worked hard over the last 6 years to restart my credit worthiness and now am finally in a position to be able to save a over 1k a month, and already have around 7k of savings to hoping to build up another 25k over 18 months and then buy a house and probably then rent it out as will move in with my partner in a few years time.

will be great to get on the property market finally as i wanted to 15 years ago but now at 32 i might finally make it

kingstreet

General BTL criteria might work against you in the scenario you describe. Many lenders will only provide BTL finance to those who already have a mortgage on an owner-occupied property.

I'd talk to a broker at the time you start looking.

ACG

It was halifax i was thinking of to be honest (just wasnt sure if we could mention specific lenders). Good news though, i bet that will spur you on to be saving more

Good luck

masterwilde

many thanks again for all the advice, i will be happy to move in it my partner and then look later at a btl.

kingstreet

ACG wrote: »

It was halifax i was thinking of to be honest (just wasnt sure if we could mention specific lenders)

I refer to a lender's criteria to give the OP the confidence of knowing that there is at least one lender out there who may be able to help. Often I use Halifax criteria because it's the easiest one to find answers online.

I often check Abbey and Nationwide as well and the times they simply don't cover issues Halifax has listed is amazing.

I'd never mention specific products, unless there was something special about them, or they met a specific need, so no implied recommendation intended.

ACG

handy to know.

Cheers.