Mortgage while BR is still on credit file

Contracts_Engineer · 6 April 2013 at 5:52PM

I want to know if anyone has been able to get a mortgage while the BR is still shown on their credit file?

I declared myself BR in May 2011 and was discharged one year later in May 2012. It was one of the best decisions Ive ever made and I am now able getting on with my life. I have tried for a Vanquis card to start rebuilding my credit file but Ive been refused, Ive also tried for a standard bank account but have also been refused. I am about to try again for both of these in May (6 months after I tried originally).

I am currently saving for a 10-15% deposit on a property with a value of approx £175,000.

What I'm hoping for is to be able to save the required amount, plus solicitors fees etc. (I'm trying to save so any other expense, e.g. solicitors fees, survey etc. would not eat in to the deposit). I am also hoping that as of Jan 2014 to use the Government scheme "Help to buy" which can be used on existing properties. I have attached a link below for anyone that's interested.

http://www.hm-treasury.gov.uk/10012.htm

My problem is that you still have to qualify for a mortgage. If I don't qualify then this scheme and ultimately my deposit are useless.

I am after any information on people that have procured a mortgage within the 6 years of declaring BR, which companies they used, what deposits they had, house values etc.

capeverde · 7 April 2013 at 9:28AM

You're not going to get one. I think after maybe 3 years you will have a better chance, but I would say you will need around a 40% deposit and a non main stream lender. High street banks aren't going to touch you because they have zero rational and common sense.

I had a situation where I actually had an 80% deposit and got turned down. Now I appreciate if I had put in the footwork I could have made it happen somewhere, but got turned down from my bank because of my previous BR. I begged the question about where they saw the risk, but the only answer I got was because of my history. Majority of banks are just yes men looking at computers and dont look to solve problems. I also asked that given their wisdom how they felt about the fact they had been insolvent and surely their mismanagement had been worse than mine which was down to illness. Again they chose not to answer.

Contracts_Engineer · 7 April 2013 at 10:58AM

Im one full year out of BR next month and I'm possibly looking at a mortgage in either two or three more years from this may. Therefore making it either three or four years from discharge.

capeverde · 7 April 2013 at 2:21PM

Youre still going to need a bigger deposit whilst BR is still on your file.

Contracts_Engineer · 7 April 2013 at 4:54PM

And do you think the government scheme Ive mentioned will help land a mortgage as it does take part of the risk?

droiderm · 7 April 2013 at 9:03PM

The key is which lenders will do Help to Buy.
This is going to be the crux. The fact (I suspect) only a small number will do Help to Buy, reduces your choice of lender massively.

For example, New Buy only has 6 lenders, and only one of them officially considers ex bankrupts after 3 years discharged.

You may find a similar situation with Help to Buy. I hope you can see the issue. Even then, the lender will expect you to pass their credit score, which may be less rigourous as it's less risk.

Things will change in 2-3 years though. For the better, or the worse.

Keep saving, clean your credit file, and keep your nose clean.

Try in 2-3 years, you have nothing to lose. But then keep saving, and waiting.

Contracts_Engineer · 8 April 2013 at 5:38PM

Thanks for the replies.

By the sounds of it I'd better keep my fingers crossed for a lottery win

:(:(:(:(:(:(:mad::mad::mad::mad::(:(:(:(:(:cry

Eve1975 · 8 April 2013 at 11:14PM

I am applying for a mortgage this year with my partner. I am waiting for the 6 years to pass this summer since bankruptcy then going for it.

We will have 50% of the deposit and going to have to be careful who we apply with. Steering clear of all the big banks and probably going to try with Yorkshire Building Society or Skipton.

Yorkshire said you have to have 36 months (I think from discharge) before they consider you.

Save as much money as possible for a deposit and get as many years as you can behind you.

I will be posting on here my journey.....

Eve1975 · 8 April 2013 at 11:16PM

Capeverde - Did you get a mortgage deal in the end?

Contracts_Engineer · 10 April 2013 at 6:57PM

Anybody else?

lindsaygalaxy · 11 April 2013 at 2:07PM

I would also be interested to know if an ex bankrupt would be able to apply. I will be 5 years br in August and have a partner with a good vredit history (no adverse). I noticed this morning that a local development are doing the scheme and aldermore are one of the mortgage suppliers for the HTB scheme for them. What do you think our chances are?