Mortgage Advice

bluezone

Hi all,

In between helping others with bankruptcy I have a question of my own. Now I am not planning on getting a mortgage soon as I am happy renting and so is the boyf but we would like to buy eventually and obviously he is worried abit about my bad credit rating I will now have.

Do I have to go with certain lenders to geta mortgage? Is the % rate a lot higher than your regular Joe Bloggs % rate?

Thanks in advance

Bluezone x

skint_geordie2007

Unfortunately it is, and you also may be required to pay a larger deposit too.
I had heard of people going to see an Independant Financial Adviser to get them the best deal from the available lenders. I have heard of a discharged just recently who was offered a mortgage with a 10% deposit and 6.5 % variable interest rate. The deposit is the killer I guess.

bluezone

Thanks for that. It would probably take us 10 years to get the deposit together unless we have any rich relatives who are on the way out?

skint_geordie2007

Its some thing I am concerned about too. As my wife and I have quite a large IPA (estimated to be in the region of 1k per month, its not finalised yet) I am hoping when the 36 months are finished, just to try and save the money for a year or so. After all , we should be used to living without it by then.
I am trying to get a council house at the moment, and I have heard if you have lived there for 3 years you can buy it for up 40% off market value. This would help too, and would at least get you back on the ladder. Depends on your council, area too I guess.
Wish I had some rich relatives to start with, I am going to disown them ;-)

bluezone

I applied for a council property and I got on the list but my bankruptcy went against me to begin with and the list was so long. Luckily I was able to rent my sis place whilst she moved in with her fella and as it is a non council property I am off the list for now.

Trying to track down my family tree online - to see if I have any wealthy relatives.....

skint_geordie2007

Just been doing a little bit more digging, this person was only recently discharged. And apparently you can get better deals the longer you have been discharged. HTH

Richard_S

bluezone wrote:

Hi all,

In between helping others with bankruptcy I have a question of my own. Now I am not planning on getting a mortgage soon as I am happy renting and so is the boyf but we would like to buy eventually and obviously he is worried abit about my bad credit rating I will now have.

Do I have to go with certain lenders to geta mortgage? Is the % rate a lot higher than your regular Joe Bloggs % rate?

Thanks in advance

Bluezone x

Hi Bluezone,

If your boyfriend is the higher earner and his credit rating is ok then I don't think you'll pay as much as if you were both discharged bankrupts. The brokers do seem to be the best way to trawl all availbale lenders and you don't have to shout from the rooftops about yr bankruptcy.

If you're asked the question "have you ever been declared bankrupt" in a face to face interview just say something along the lines of "oh yes, it's something I've always wanted to do". If they don't pursue the question and tick the box "No" then you've done nothing wrong.

"Tell the truth, but don't always be telling the truth"

Richard

shameless-about-money

bluezone wrote:

Hi all,

In between helping others with bankruptcy I have a question of my own. Now I am not planning on getting a mortgage soon as I am happy renting and so is the boyf but we would like to buy eventually and obviously he is worried abit about my bad credit rating I will now have.

Do I have to go with certain lenders to geta mortgage? Is the % rate a lot higher than your regular Joe Bloggs % rate?

Thanks in advance

Bluezone x

You would be very unlikely to get a morgage over 85%. The interest rate is roughly 2% above - at the moment you are looking at 7.2% minimum.

The only way you would get a mortgage is from an Independent Mortgage Advisor

If two of your are going for a mortgage, then get the mortgage in one name only. You can add yours somewhere down the line - like six years' time - on a lower interest rate

If you are applying for a mortgage you MUST declare your bankruptcy where it is mentioned on the form. Don't attempt to lie about it at all.

bluezone

shameless-about-money wrote:

You would be very unlikely to get a morgage over 85%. The interest rate is roughly 2% above - at the moment you are looking at 7.2% minimum.

The only way you would get a mortgage is from an Independent Mortgage Advisor

If two of your are going for a mortgage, then get the mortgage in one name only. You can add yours somewhere down the line - like six years' time - on a lower interest rate

If you are applying for a mortgage you MUST declare your bankruptcy where it is mentioned on the form. Don't attempt to lie about it at all.

Thanks for this advice. We are not looking to get a mortgage just yet as we have to save up for a deposit. My boyf and I are on a similar wage so I dont think he would be able to get a mortgage in his name only. Chances are that we wont be able to buy anything in our area for about 5 years anyway!