Discharged bankrupt -will i ever get a mortgage?

Bambi_loves_cookies

I declared myself bankrupt in 2003 after racking up University debt. I was discharged in 2004 and have been in that position for 3 years.

Three years on I earn £20K and have obtained a high interest credit card to build up my credit score.

I have been to see two independant mortage providers who both said they thought they could help me, but after assessing my sitiuation and saying they would get back to me neither have.

I have no deposit.

Has anyone ever been in this situation?

I have heard it takes 6 years to improve/clear/re-instate your credit history but i am not clear.

I have also heard I should apply to the County Court to get a notice of discharge - does this help?

Can anybody give me any advice? I have the money to pay a mortage but just can't on the ladder.

Thanks BBL

MortgageMamma

You will not get a 100% mortgage if you are a discharged bancrupt, unless you are buying a shared ownership property and are prepared to pay a rate of about 8%

Get the cert of discharge from the courts, cost about £60 but important to have it for future

Bambi_loves_cookies

Thanks for the advice - please can i ask what is the best way i can get a mortgage - is it by having a deposit? What percentage will i need.
Thanks B

JoeK_3

Bambi_loves_cookies wrote: »

Thanks for the advice - please can i ask what is the best way i can get a mortgage - is it by having a deposit? What percentage will i need.
Thanks B

Save hard for a deposit of 10% plus fees and stamp duty.

You might want to consider a shared ownership property.

If you are unable to buy a property outright on the open market, then shared ownership is the ideal solution for you. Shared Ownership is a part buy, part rent scheme, which enables purchasers to buy a home in stages. Purchasers can buy an initial share between 25% and 75% of the value of the property and pay a subsidised rent on the remaining value of the property. Shared ownership properties can be provided by housing associations, housing trusts and local authorities. These organisations try be as flexible as possible with regards to the initial share purchased, but this may be as much as 50% of the market value at some of their developments.

A service charge will normally be payable to cover the cost of communal maintenance. The service charges payable can remain the same whatever percentage you own of your home and continues to be payable should you purchase your home outright where possible. You will need to have sufficient savings to cover the initial cost of home ownership: legal fees and stamp duty for example. You will need to be able to meet the costs of rent, mortgage, service charges and other associated outgoings.

As your income increases, you can buy further shares of your home until you could own 100% of the value and no longer share the ownership with the housing association or trust. The greater the percentage you own, the lower the percentage on which you pay rent. However, if you do not wish to buy more shares in the property, you do not have to. Obviously, the more you own, the less you pay in rent. And, if you can buy your home outright in the future, then no rent will be payable.

JoeK

MortgageMamma

There is also another kind of shared ownership, the openmarket homebuy scheme

http://www.housingcorp.gov.uk/server/show/nav.2129

If you dont want to go into shared ownership all I can suggest is that you save like crazy