Bankruptcy, defaults but want to get a mortgage

Eve1975

Hi,

I did post in the bankruptcy forums but this may be a better place to post. I went bankrupt in 2007 so this will be dropping off my credit files this summer. I also have 3 defaults, which again will leave my credit files at the same time. My partner and I wish to get a home together and try for a joint mortgage. He should have around £110,000 as a deposit once he sells his property so looking to borrow approx £100,000. Will this large deposit help to get a mortgage as obvioulsy I am concerned my bankruptcy will make things difficult. I know I have to be honest with mortgage companies regarding my bankruptcy. Also would be best to wait till the summer before applying for a mortgage when my credit file no longer has my banruptcy and defaults showing on it.

kingstreet

It doesn't matter if the bankruptcy shows up on your credit file or not. It will be picked up by the solicitor's bankruptcy search close to exchange anyway.

So, even if it has dropped off your credit file, it's better to disclose it so you don't run the risk of having your mortgage offer withdrawn just as you are getting ready to move in...

Some lenders will simply decline any former bankrupt, some won't, so you need to research the market carefully, or use a broker.

If you can wait until the defaults fall off, that would help. Once these have dropped away, your chances of a joint mortgage at high street rates will improve drastically, although the size of the deposit means you will get a mortgage now, if you really needed to.

Please remember, if you have a joint mortgage application credit searched, this will create a financial association with your partner which could affect him if you do it while the defaults still appear.

Eve1975

Thanks for the reply. I think I will leave it until the summer when my credit file is better as at the moment my credit score is rated as 'fair', this being down to defaults and bankruptcy. We would like to get a good deal with a mortgage and chance of approval.

I realise I will always have to be honest about my bankruptcy so would always disclose this information if asked.

For the sake of 4 months (well I have waited nearly 6 years!) it is not long to wait in the scheme of things, and my partner still needs to sell his house so by the time this happens it will probably all fall into place.

Thanks once again for taking your time to reply.