Mortgage once bankruptcy is gone from credit report

david_m4

As a discharged bankrupt, is it possible to ever get a mortgage at a normal price from a high street lender? Even after six years with a clean credit report? Assuming you are honest and own up to it that is.

Please reply if you got a mortgage from a mainstream lender at the normal advertised interest rate. Even if you think they approved it by mistake...!

I know there are expensive lenders who target ex-bankrupts, but a mortgage at three or four times the normal rate seems like a quick way to go bust again. Realistically, should bankrupts plan on renting for the rest of their lives?

This question isn't for me, but for a relative. Thanks for reading.

Anondebtadvisor

There are many people who get a mortgage post bankruptcy and IVA from high street lenders.

Make sure your credit file is accurate and that any defaults are correctly entered and removed and that the bankruptcy is no longer showing.

Use a whole of the market mortgage broker and be honest about your circumstances and i am sure you will be fine as long as you have the required deposit

david_m4

Thanks. Is there a minimum deposit level below which you wouldn't bother getting on the phone? They have been saving almost since discharge, but in mortgage terms it probably still doesn't amount to much.

I'm assuming these brokers take a one-off fee, but after that you deal directly with the lender just like a normal customer - is that right? What if the broker can't find any affordable mortgage which would be approved, does that mean the fee is lost?

Basically I'm trying to convince them (my relative) they have nothing to lose by applying. Just want to check that is actually true first!

Anondebtadvisor wrote: »

Use a whole of the market mortgage broker and be honest about your circumstances and i am sure you will be fine as long as you have the required deposit

tigerfeet2006

Have a look at this excellent thread
https://forums.moneysavingexpert.com/discussion/2918012

newstart2012

Just a thought, wouldn't the solicitor/conveyancer do a bankruptcy search as part of their obligations to the bank??

tigerfeet2006

Yes they usually do. But the longer in the past the BR is and if your credit file looks good with good credit then they start not worrying sbout it so much. Oh! and a healthy deposit helps as well.

droiderm

Many hight street lenders will not lend if you have been bankrupt.
You may need a 10 or even 25% deposit.

MrOrchard

We were able to get a normal high street mortgage with Yorkshire Bank 12 months ago with a 5% deposit.

These days they don't look at the past so much as "affordability" and we had to get letters from employers confirming salaries, details of all expenses in the previous three months (from a Costa Coffee receipt through to a bill for a new sofa). Hoop jumping but well worth it.

droiderm

When were you discharged?
Were you both declared bankrupt?
Did you have anything outstanding on your credit files? ie. defaults from BR?
Did you have any previous house repossessed?

Sorry for the questions, and thanks!

financialstress

MrOrchard wrote: »

We were able to get a normal high street mortgage with Yorkshire Bank 12 months ago with a 5% deposit.

These days they don't look at the past so much as "affordability" and we had to get letters from employers confirming salaries, details of all expenses in the previous three months (from a Costa Coffee receipt through to a bill for a new sofa). Hoop jumping but well worth it.

This is a great result!! Very encouraging.

Why do you think you managed to obtain this Mortgage when others seem to struggle? I am just about to embark on attempting to get a Mortgage (discharged 2008).

What was the house value that you were purchasing? (sorry, I'm being nosey - but really like to hear the good stories!)