Previously bankrupt

mshaw2

Can someone please point me in the direction of some information regarding being previously bankrupt and trying to obtain a mortgage?

Thank you

hillcats

How long ago was it ?

ACG

What information are you after?

There are lenders that would potentially offer you a mortgage, you could be best spending an hour with a mortgage advisor discussing your circumstances and requirements.

mshaw2

It's been 2 years since being discharged. My attitude has totally changed towards money and I know I'm ready to build my credit rating back up. Although, recently I've read some horror stories about 80% deposits and stuff. Is this just old wives tales? Is it possible to rebuild my credit and get a mortgage with a 'normal' deposit?

ACG

Have you had any credit since you were discharged?

TDPIX

mshaw2 wrote: »

It's been 2 years since being discharged. My attitude has totally changed towards money and I know I'm ready to build my credit rating back up. Although, recently I've read some horror stories about 80% deposits and stuff. Is this just old wives tales? Is it possible to rebuild my credit and get a mortgage with a 'normal' deposit?

When you say horror stories about 80% deposits, are you saying it'd be horrifying if a bigger deposit was required? Or that 80% would be horrifying?

Since my hunch is that if it was only 2 years since being discharged, then 80% would be an absolute minimum.

ACG

An 80% deposit probably wont be needed. If it gets that bad then everywhere would just decline you instead.

mshaw2

That's not good news for me. I'm going to try and build my credit rating back up, but is there even a chance of me getting a mortgage in even say 10 years time with just a 10% deposit? Or am I forever doomed!?

ACG

If you only have a 10% deposit then you will find it hard to get a mortgage, i would say 15% as a minimum maybe 20%.

If its going to take you 10 years to save up 10% then on a £200k property thats only £160 a month...if thats all you can save i dont think buying is the right option - youve probably plucked those figures from the air but just to put it into perspective.

You havnt said much about what you have - earnings, deposit etc and what your after - amount to borrow, property price.

Its difficult to say but i would say if you can get to a 20% deposit you stand a chance of getting a mortgage - probably not at the best rates to start with but there will be options.

mshaw2

Thanks ACG. Yea they were figures I just plucked out of the air. I earnt 36k last year but got a promotion half way through the year so looking at 45k this year. I'm saving between 200 to 300 a week and obviously have no debt. My question was more of will I still be able to get a mortgage in the coming years without needing a massive (50%+) deposit. I hope so

ACG

Yes, but i would try and head for a 20% deposit really, Dont try to stretch the income multiples and you should be able to find a lender. I would suggest you speak to an advisor though as generally speaking what you are looking for probably wont be found on the high street.