Discharged Bankrupt - over 6 years

micaleff

I am applying for a mortgage.......55k a year with a 15 - 20% deposit for a house no more than £130k (down sizing)

Declared bankrupt in Aug 2006 so this has now 'dropped off' the file. no defaults and all the accounts are in good order - have a credit building credit card which is also all 'green'.

I applied with YBS as i bank with them but have been declined?

Can you advise of anyone else i should try - im not sure why i would have been declined as everything is showing as good and i have current credit?

I also bank with HSBC would it be worth trying them?

Any help appreciated!

Dave_Ham

Do not apply to HSBC - no chance..

Engage a broker and they can qualify for you, rogue applications will not help your credit file in the short term.

This can be achieved given what you have declared.

Good luck

micaleff

Thanks Dave......are HSBC really that bad?!

We had been advised previously to try Skipton Building Society but i just dont wantt o waste the searches if it doesnt get accepted - i applied with Skipton in May but they declined on a default that had been missed I have now had this rectified is it worth going back to them?

dunstonh

Thanks Dave......are HSBC really that bad?!

Or good depending on your angle! HSBC have a better quality mortgage book and cherry pick. So, they will view your history and hold it against you more than other lenders.

micaleff

true! but i am always wary i just feel a little foggy from the whole process! the reason i ended up having to go bankrupt was through bad advice from a IFA - nightmare.

dunstonh

micaleff wrote: »

true! but i am always wary i just feel a little foggy from the whole process! the reason i ended up having to go bankrupt was through bad advice from a IFA - nightmare.

Thats a new one. I cannot imagine how advice from an IFA could result in bankruptcy. IFAs are investment advisers. So, you are dealing with assets. Not liabilities. Plus, bad advice is consumer protected which would result in redress being paid.

micaleff

hi

i meant independant financial advisor......sorry! I had an endowment mortgage that wasnt going to mature enough to pay off the house so he advised to remortgage into a repayment but obviously over a shorter amount of time because of my age but it resulted in a mortgage payment of £1800 a month for a £180k mortgage.....It became more difficult to keep up with payments so in the end he advised me to go bankrupt.

GMS

micaleff wrote: »

hi

i meant independant financial advisor......sorry! I had an endowment mortgage that wasnt going to mature enough to pay off the house so he advised to remortgage into a repayment but obviously over a shorter amount of time because of my age but it resulted in a mortgage payment of £1800 a month for a £180k mortgage.....It became more difficult to keep up with payments so in the end he advised me to go bankrupt.

Would it not have been easier to sell the house?

How did you go bankrupt for a secured debt? Was there unsecured debts too?

Did you not realise the repayments were too high when you agreed to the mortgage?

micaleff

i was nieve to say the least and just went with what he suggested. I could afford all the payments but it didnt leave any room for manouvre when it came to unexpected expenses. I did have other unsecured debts and the house went up for sale but didnt sell so he advised only option would be to go BR since then i have been advised that i would have been best leaving it to run its course and then getting a loan to cover the deficit at the end of the endowment - hind sight!

I really now need to know what the best route to go down is......I have finally sold the house and am now living with family all cra files are clear and i now i can easily afford the amount for a new house but just not sure where to go for a mortgage?!

Dave_Ham

Then you will need to pay for advice, although I cannot believe you put this all onto your previously IFA's shoulders..

Given the fact you are not going to be any younger, term and repayment will still be an issue as Interest Only is not an option now..

Best of luck

micaleff

hi Dave - not putting it all on his shoulders at all - i was stupid enough to accept his suggestions without researching any further. like i said was very niave and just presumed that the advice given was the best but when i went through the process the other adviser suggested that there were other options....hind sight again!

I will contact the adviser that i have spoken with previously and see if she can help at all. I am now going to have to extend the mortgage into my retired years to afford to do this but i cant live with family for the rest of my days!!!

I dont want an interest only i just want a clear repayment mortgage for 10 - 12 years. btw the unexpected costs were 2 funerals (parents abroad) which werent forseen and obviously neither myself or the advisers 'fault'.

thanks