Discharged Bankrupt Mortgage research

DaisyDuke

I have been making some enquiries and have collated the following information:-

I have found only four lenders who will consider a discharged bankrupt before the six year marker, they are:-

Halifax
Nationwide
Accord
Leeds BS

All of the above should consider a discharged bankrupt, some of them after 1 year providing you pass the credit search.

How can you pass a credit search..... well if you've been building good credit history and your score is fair or above then you may be considered by an Underwriter providing you can back up your bankruptcy with anything relevant.

A repossession however is worse than your mortgage being included in your bankruptcy so you need to know if you were repossessed or did a voluntary repossession how this was recorded. If recorded as repossession then you can forget those four lenders.

It is a mind field out there and it seems it depends on who you speak to and what mood they are in at the time as to what information you can get.

It's crazy that in the main you cannot be deemed a good risk until after six years when you file is clean.

The six year rules seems harsh, especially when there can be reasons out of your control for a bankruptcy.

a year or so after bankruptcy or the end of an IPA its possible to have a good amount of savings but yet still not be considered for a mortgage when the mortgage payment could be considerably less than your rent.....

RANT over!

JustinCredibleGillespie

Thank you!

Great to know there could be hope

JCG

xx

sundays

if your research is accurate , that is nice to know, but have to say your last paragraph cannot be correct, a undischarged BR should never have savings , because that is the point of a IpA and if they had sufficient enough to be put down for a deposit then there statements must be dishonest at the offset to the OR in the initial 12 months.

Also your file for credit does not show repossession only default , settled or satisfied, so you are implying the future mortage company will go to the former lender and ask.
Well i would so why wouldnt they and of course if you couldnt maintain a mortage in the former good times, youve likley no
chance in todays times
id be intrested if a potential lender did ask the question, is there a breach of data via the DPA.

aisyDuke;discussion/3915425]I have been making some enquiries and have collated the following information:-

I have found only four lenders who will consider a discharged bankrupt before the six year marker, they are:-

Halifax
Nationwide
Accord
Leeds BS

All of the above should consider a discharged bankrupt, some of them after 1 year providing you pass the credit search.

How can you pass a credit search..... well if you've been building good credit history and your score is fair or above then you may be considered by an Underwriter providing you can back up your bankruptcy with anything relevant.

A repossession however is worse than your mortgage being included in your bankruptcy so you need to know if you were repossessed or did a voluntary repossession how this was recorded. If recorded as repossession then you can forget those four lenders.

It is a mind field out there and it seems it depends on who you speak to and what mood they are in at the time as to what information you can get.

It's crazy that in the main you cannot be deemed a good risk until after six years when you file is clean.

The six year rules seems harsh, especially when there can be reasons out of your control for a bankruptcy.

a year or so after bankruptcy or the end of an IPA its possible to have a good amount of savings but yet still not be considered for a mortgage when the mortgage payment could be considerably less than your rent.....

RANT over!
[/QUOTE]

DaisyDuke

sundays wrote: »

if your research is accurate , that is nice to know, but have to say your last paragraph cannot be correct, a undischarged BR should never have savings , because that is the point of a IpA and if they had sufficient enough to be put down for a deposit then there statements must be dishonest at the offset to the OR in the initial 12 months.

Also your file for credit does not show repossession only default , settled or satisfied, so you are implying the future mortage company will go to the former lender and ask.
Well i would so why wouldnt they and of course if you couldnt maintain a mortage in the former good times, youve likley no
chance in todays times
id be intrested if a potential lender did ask the question, is there a breach of data via the DPA.


To clarify - I didn't word my last paragraph so well. 1 year after an IPA it is possible to have good savings - if you are a good earner without any credit committments you will have potential to save alot of money. Or you could win some money or be gifted a deposit all scenarious that are not being dishonest in any form.

With regards to behaviour - there are no scales of bankruptcy, ie was it their fault was it through circumstances out of their control. remember you can't pick and chose which debts are included in the bankruptcy - its all or nothing so if you lose your house it is not always fair if you've had an immaculate payment record up to that point.

I know people are entitled to their opnions but sometimes people judge without knowing their circumstances. My note was purely to inform folk of what I had learned.

heathcote123

DaisyDuke wrote: »

I have been making some enquiries and have collated the following information:-

I have found only four lenders who will consider a discharged bankrupt before the six year marker, they are:-

Halifax
Nationwide
Accord
Leeds BS

All of the above should consider a discharged bankrupt, some of them after 1 year providing you pass the credit search.

How can you pass a credit search..... well if you've been building good credit history and your score is fair or above then you may be considered by an Underwriter providing you can back up your bankruptcy with anything relevant.

A repossession however is worse than your mortgage being included in your bankruptcy so you need to know if you were repossessed or did a voluntary repossession how this was recorded. If recorded as repossession then you can forget those four lenders.

It is a mind field out there and it seems it depends on who you speak to and what mood they are in at the time as to what information you can get.

It's crazy that in the main you cannot be deemed a good risk until after six years when you file is clean.

The six year rules seems harsh, especially when there can be reasons out of your control for a bankruptcy.

a year or so after bankruptcy or the end of an IPA its possible to have a good amount of savings but yet still not be considered for a mortgage when the mortgage payment could be considerably less than your rent.....

RANT over!

I doubt it seems that harsh to the people that didn't get paid because of the bankruptcy.

would you lend lots of money to someone that failed to pay their debts a few years ago?

sony123456789

Hi All,
Is there any lenders that would lend to discharged bankrupt of over 36 months. I have a £40K deposit so a LTV of 70%. Nationwide said no and an agreement in principle with National Counties. Any help here would be greatly thanked. Thanks.

alastairq

I doubt it seems that harsh to the people that didn't get paid because of the bankruptcy.

would you lend lots of money to someone that failed to pay their debts a few years ago?

Sorry, but that's not what happens with a bankruptcy.

Debts are indeed paid, by dint of the fact the Official Receiver realises all the bankrupt's assets for the benefit of creditors.

BTW, mortgages do not get 'included' in Bankruptcy...due to the fact that, a mortgage is a secured debt.

Bankruptcy only deals with unsecured debt.

foolishboy

..Yorkshire BS will lend before the 6 years too, search for my other posts on here.

FB