Mortgage Struggle

JaneyKT

Hi there, I was wondering if anyone had any advice to offer, apologies if I am a bit long winded, just trying to give an overview of the situation

Background:

My husband and I both had a bad credit history, which we resolved by my filing for bankruptcy and my husband entering into a trust deed. I was declared bankrupt under the low income low assets scheme, entered in 2008 and discharged in June 2009. My husband entered into TD in 2008 and was discharged in April last year.

Aspirations:

We are going to have in the region of 30,000 pounds which is coming from the profits of a house sale my Mum is making, and is gifting to us. The property we would look to buy would be a very budget property in the region of 40,000 pounds. Is there any hope of getting a mortgage for the outstanding 10,000?

When contacting L&C and Alexander Hall my husband was advised without any questions re: deposit being asked, that no mortgage would be given if out of a trust deed for less than 2-4 years, however does having a 75% deposit alter this any, and if so who might the lender be that may deal with this?

I understand that we were at fault for getting ourselves into a bad financial situation in the past and understand that this is why he is being given this information, however it is also frustrating that no lender would consider taking a risk on an investment such as this, as if we did not keep up repayments they would be walking away with quite a sizable profit.

Thanks in advance for any advice which may be offered on this topic!

ACG

Its difficult to say, if you havnt had any credit since then it will be quite difficult. That being said you will have a 75% deposit so that has to be in your favour. The other down side is that not many lenders will offer a £10k mortgage, i think the lowest is around £25k.

Thrugelmir

JaneyKT wrote: »

however it is also frustrating that no lender would consider taking a risk on an investment such as this,

Not enough profit to make it worthwhile for a lender.

GMS

Which area is the property in?

JaneyKT

The property would be in North Lanarkshire.

So from what you guys are saying at whatever the amount it's likely to be out of the question? As high deposit, low mortgage means too little profit for lender and if we asked for a 25,000 mortgage we would likely be refused?

Thanks for the reply's, appreciate it, just so so frustrating to be throwing so much money away (and struggling with high costs) of rent, as none of this helps us to increase our financial standing.

Guess we're not alone in these times though.

Thrugelmir

JaneyKT wrote: »

Thanks for the reply's, appreciate it, just so so frustrating to be throwing so much money away (and struggling with high costs) of rent, as none of this helps us to increase our financial standing.

Guess we're not alone in these times though.

If your mother is able to gift such a sum. Then start scrimping and saving to obtain the remainder of the cash required. Then purchase outright.

Will be worth the sacrifice. As with no rent to pay. Life will be so much easier.

GMS

JaneyKT wrote: »

The property would be in North Lanarkshire.

So from what you guys are saying at whatever the amount it's likely to be out of the question? As high deposit, low mortgage means too little profit for lender and if we asked for a 25,000 mortgage we would likely be refused?

Thanks for the reply's, appreciate it, just so so frustrating to be throwing so much money away (and struggling with high costs) of rent, as none of this helps us to increase our financial standing.

Guess we're not alone in these times though.

I was thinking of a lender who are ok with recently discharged bankruptcy but they do not lend in Scotland.

Can't think of any who would be able to help you sorry.

ACG

2 options i would look at would be:
£25k mortgage, halifax allows ex bankrupts but you need to have a decent credit score now.
A personal loan secured against a property. Interest rate would be a lot higher but it could be an option.

Im not sure where you would go for either of these but its something that you could look into.

Southernman

I would merely just suggest to save the final £10k between you. Hard work pays off in the end and two incomes are better than one.