discharged bankrupt ok to joint buy our house now?

debbz_11

declared bankrupt in august 2004
discharged in march 2005
me and hubby deciding to buy our council house this year
as it stands...i told hubby to go ahead with it just in his name as im unsure if my bankruptcy will have any affect on us buying it together.
no papers signed yet as we are unsure if my name on the mortgage will have any adverse effects?
what is it best to do?
hubby buy in his name only or both of us buy together?
any advise greatly appreciated
thanx

Richard_S

debbz_11 wrote: »

declared bankrupt in august 2004
discharged in march 2005
me and hubby deciding to buy our council house this year
as it stands...i told hubby to go ahead with it just in his name as im unsure if my bankruptcy will have any affect on us buying it together.
no papers signed yet as we are unsure if my name on the mortgage will have any adverse effects?
what is it best to do?
hubby buy in his name only or both of us buy together?
any advise greatly appreciated
thanx

Hi debbz,

Bankruptcy stays on your credit file for six years after you were declared bankrupt so it may well adversely affect your application in terms of the number of lenders who'd be prepared to offer you a mortgage and the rate of interest they'd charge. That is to say you'd almost certainly pay a higher rate if your name was on the application.

If it was me, I'd keep my name off the mortgage just to be on the safe side. You can always have your name added later if you'd like to.

Richard

Conor_3

Richard_S wrote: »

Hi debbz,

Bankruptcy stays on your credit file for six years after you were declared bankrupt so it may well adversely affect your application in terms of the number of lenders who'd be prepared to offer you a mortgage and the rate of interest they'd charge.

After 2 years from date of discharge they don't consider it anymore according to the broker I spoke to.

Richard_S

Conor wrote: »

After 2 years from date of discharge they don't consider it anymore according to the broker I spoke to.

Hi Conor,

I can believe that's true if you're speaking to a broker because the companies that will lend to a discharged bankrupt charge a couple of %age points more than a "high street lender" and the broker probably earns a bigger commission for selling a more profitable product.

However, the best value mortgages are with the big banks and building societies and I'm almost certain that they do take it into consideration. I know for a fact that one of the biggest lenders won't entertain anybody that's ever been bankrupt; the computer says "no" at the "have you ever been bankrupt"? question.

I wouldn't have thought it worth the risk of having to pay a higher rate if the O.P's O.H has got a clean credit history.

Richard

rog2

From the point of view of applying for a mortgage, I would strongly advise that the mortgage is only in your husband's name, otherwise, as pointed out by Richard, you will find a substantial hike in the rates of interest offered. Your husband can always add your name to the deeds at a later date.

debbz_11

thanks for the advise. i always thought it best for hubby to go for it on his own but now we are sure its the right thing to do.
thanks so much for your help

Miss_Scarlett

Debz, I'm wondering if you'd be better waiting a year or so, house prices being what they are and interest rates on the rise, I'm in rented and planning to stay here for a bit just until the market shows which way it's going. You could put the difference between your current rent and a potential mortgage into savings to build up a bigger deposit while you wait it out.

Of course I don't wish to second guess your decision and presume I know what's best for you, so please excuse the interference. I think the current housing market scares me at the moment, I know councils undervalue their properties and you will get a discount so you might be ok.

rog2

debbz_11 wrote: »

thanks for the advise. i always thought it best for hubby to go for it on his own but now we are sure its the right thing to do.
thanks so much for your help

I think you have made the correct decision.
Might I suggest that your husband approaches the Building Society directly, rather than through a broker.

Conor_3

Richard_S wrote: »

Hi Conor,

I can believe that's true if you're speaking to a broker because the companies that will lend to a discharged bankrupt charge a couple of %age points more than a "high street lender" and the broker probably earns a bigger commission for selling a more profitable product.

I didn't pay a higher rate. In fact, the rate was lower than my mortgage which I've had with the same company well before I banked.

Richard_S

Conor wrote: »

I didn't pay a higher rate. In fact, the rate was lower than my mortgage which I've had with the same company well before I banked.

Hey Conor,

That sounds like good news for a number of us on here. How long was it after you were discharged? I wouldn't mind having a chat with that broker.

Richard