Shared Ownership Mortgages for Bankrupts - URGENT HELP PLEASE!

Jesca

Hi,

After 6 years of living with Bankruptcy and cleaning up my files. Yesterday I checked all 3 credit reference agencies and my files are now CLEAR!

I have had a current account since 2007 which has never gone into overdraft and have successfully got a Vanquis VISA credit card in June.

Things are looking up.

The next step is a mortgage. I have found that I qualify for a Shared Equity Scheme operating in the Scottish Highlands and am about to complete the application form. The property is £110,000 and I can buy up to 60% of it requiring a mortgage of £66,000. My annual salary is low at £12,950 p/a. Apparently only a few lenders offer shared equity and even less to BRs.

Halifax have given an decision in principle for £63,960 and I will need to provide the rest in cash to make up the £66,000. However on the form, they asked the question, "Have I EVER been bankrupt" which I of course answered yes.

Even though my credit file is clear and i have instructed a solicitor to do a private search regarding my bankruptcy, I am not very hopeful. However I don't know what more I could have done?

When I go back to them for a mortgage offer, they will consider my application?

Will they reject me even though I have tried everything to get back on my feet.

Does anyone have any experience with this and can offer any help and advice? I am due to be homeless at the end of August.

I don't want to get my hopes up but this was my one opportunity to get back on my feet and moving on from 6 years of hell.

Many Thanks

Jesca

Wh05apk

Halifax will consider bankrupts subject to a good enough credit score, which with your large deposit you could achieve.

The important thin is that you MUST declare the bankruptcy, provided you do then that should not be an issue.

I am surprised the amount they will lend, it seems high for a "low" salary, are you paying any rent element for the hared equity? have you declared it?

gazfocus

Firstly, if you are buying a shared ownership property, you will still need a deposit of AT LEAST 10%, meaning you would only need a mortgage for £59,400 and you would need to find £6600 yourself.

From experience, getting £59,400 on a £13k salary will be difficult because Halifax will also need to take into account the rent for the other 40%, so say the rent is £200 per month, that would bring your salary down to £10,600.

I'm actually in the process of getting a shared ownership mortgage and even on an £16k income a bit higher than yours (and without the bankruptcy) it was proving to be difficult, although I did still have a default on my credit file.

I don't want to dash your hopes and I sincerely hope you manage to get a mortgage but this is just my opinion.