3 Years Post Bankruptcy Mortgage?

louiseca

UPDATE - see below

Hi
Looking for some advice if possible. Myself and my husband will be 3 years discharged from bankruptcy (Scotland) this March. House had been in negative equity when we declared bankruptcy so we purchased the beneficial interest from our Trustee. House at the moment is worth approx £100000 and our mortgage is currently £95000 (Northern Rock). We have never (even prior to bankruptcy) missed any mortgage payments and we both now have Vanquis cards, purely to help our credit rating – paying off in full each month. We also did a credit clean up last year and I have ordered both our credit files to double check there are no other errors.

We are keen to move house and we are considering buying somewhere that my mum can move into with us (she is retired and has been really ill the past year or so). If we did this she would be willing to gift us approx £100000 from the sale of her house to use as a deposit with us taking a mortgage for the remainder – probably up to £150000. She would be happy to complete any documentation to say that it is a gift and she has no interest vested in the house. Mine and hubby’s combined earnings are just over £41k.

Am I right in thinking that we would need to wait until we are past the 3 years discharge date and even then it is likely that Nationwide are the only ones who might accept us? I know that many other lenders want you to be discharged for 4 or even 6 years before they will consider you.

Does anyone have any experience with Nationwide after a 3 year discharge? Am I best to approach them directly or use a broker? Any issues that I haven’t thought of?

Thanks for your help.

Louise

droiderm

I am no expert, but I was looking a while back.
Might be worth looking at ipswich building society, melton mowbray or the skipton.

Give them a call , they will talk to you. Ask them specifically about discharged bankrupts, and gifted deposits. Just talk - don't apply!

You may want to speak to broker though, although with your big deposit from what I have read you should be ok. Also check affordability for each lender you get in touch with.

Some links you may find useful

http://www.ibs.co.uk/intermediaries/basic-lending-criteria

http://www.mmbs.co.uk/Intermediary%20Mortgage%20Underwriting%20Guide%20v%20G2.pdf

louiseca

Thanks very much for that droiderm - much appreciated. Will have a look.

Louise

droiderm

No probs, hopefully an expert will come along soon though.
That was just based on my research as an ex bankrupt.

droiderm

Just thought I better add, the Skipton might be 4 years.
People have also had success with Mansfield BS, YBS and National Counties.

May be worth looking into those too.

Please keep us updated on how you get on, even if you go through a broker.

louiseca

Will do droiderm - won't be applying until April so that the 3 years are past but will keep you posted. Thanks again.

louiseca

*UPDATE

Finally after our 3 year discharge date had passed we went to a whole of market broker who agreed that Nationwide was probably the best option. Computer declined us straight away but when he phoned he was told to refer it to the underwriters which he did. I have phoned Nationwide today for an update (broker on holiday) and they have said we were declined. This was based on an application of £150,000 with £100,000 deposit.

I stupidly didn't ask why and now they won't give me info as I don't have the reference number. Not that it really matters anyway I suppose.

The only thing still on my credit file from that was included in the bankruptcy is a small Barcalycard debt that I have now asked them to amend 3 times. Not sure if this will have affected it.

We have retained a mortgage throughout this period, never defaulted on any mortgage payments and both now have a credit card each which is paid off in full each month.

Is there anywhere else I can try or anything else I can do to help our chances.

Thanks

Lou