Bankruptcy and Mortgages

Donut_girl71

Hello, I'm very new to this so apologies if I don't post this properly!
I live in Scotland and was made bankrupt in June 2009. I was discharged in June 2010.
I am looking to buy property with my partner and I'm concerned that I can't get included on a mortgage application because of my bankruptcy.
Are there any high street lenders out there that would consider me for a mortgage? Or, any other lenders?
Any information that anyone can give me would be greatly appreciated. Thank you.

Neslein_2

Before I went BR one of my main concerns was about getting a mortgage post BR, and how long it would take. From what I have seen so far Yorkshire building Society gets mentioned a lot with applications being accepted after 36 months. I'm sure if you do a search there will be many many threads with similar questions

Donut_girl71

Thank you Neslein.I'm very new to the site, so still finding my way around.
I've tried a few searches on here and found an old thread via a google search.
Good to know about the Yorkshire. That one wasn't mentioned.


I was advised that Nationwide was another one, but when I called their general helpline today, they said their policy was they only accept applications from people 6 years after their BR discharge date - unless you were made BR under very exceptional circumstances ie bereavement.


I am therefore slightly more hopeful that I might be able to get a mortgage at some point this year (fingers crossed)


Thank again for your input.

foolishboy

..satisfied YBS customer here - it's 36 months post discharge so up to 48months from the BR itself depending on whether you did the full year.

Eve1975

I am hoping to get a mortgage with my partner. Been 6 years this summer since I went bankrupt so just over 5 years since discharge. I am putting off appying until everything drops off my credit file. Still has defaults showing till the summer. Of course will admit to my bankruptcy when applying but credit file not looking too great with the missed payments and defaults on my Equifax file.

Check your credit files to see how healthy it looks. I have spent the last 6 years building my credit file back up.

Get a the biggest deposit you can which will help.

I am either going for YBS, Skipton or Nationwide. Have spoke to to YBS but they are quite tight as to what they lend.

So watch this space as I will update to an progress I have.

louiseca

Hi

Not sure that the info gave you was correct. Nationwide are one of the most bankrupt friendly for mortgages and on their intermediary site it says they accept applications from discharged bankrupts after 12 months and their general lending criteria says 36 months so unless this has changed in the last 2 weeks the person you spoke to was talking nonsense.

I am in a similar position to you, in scotland and discharged 3 years. We were declined from Nationwide 2 weeks ago because i still have 2 defaults listed on my credit file. Initial letters sent to companies 2 years ago to clear up file but 4 letters later these 2 just havent budged. Spoke to nationwide before application went in who said that as long as we had proof of discharge it wouldnt matter they were still on our credit file. Not true unfortunately. Credit file needs to be squeaky clean to get past the computer and the BDM wouldnt allow an appeal for us to prove these defaults were included in bankruptcy! I am hoping to go back to them in a couple of months once, hopefully, the defaults are off. So, double check your crefit file and make sure everything from bankruptcy is cleaned up.

A decent deposit and good credit history since discharge is also important.

Good luck

Lou

Neslein_2

Any further news on your mortgage?

djh77

Hi all, I am also interested in obtaining a mortgage. At the moment I am in the process of trying to clean up any loose ends on my credit file that may prove a stumbling block.

Any of you guys that got a mortgage through Nationwide or YBS (the 2 that I have been advised are the best through a mortgage broker), what sort of deposit have you had to have got?

The reason I ask is that some people have told me that even though I am 6 years since the bankruptcy I still may need at least 20%.

Thanks.

foolishboy

..my files were squeaky and Nationwide told me to jog on.

We had 25% deposit and lending was 2.5xjoint income.

No point using a broker for YBS and no point waiting for the 6 years as I got the same rate as I would have had as a non-BR. 2.89% fixed for 5 years rings a bell.

You will have to have everything ship shape on the file as they'll go through it in some detail, same goes for bank statements.

HTH
FB

Eve1975

You say not to wait for 6 years.

The reason I am is because of my credit file. Until the 6 years are up my defaults and missed payments are still showing on my file so after the 6 years these will be gone so my file will look a lot healthier.

You are right about the rates though. I could apply now and it is the same as it will be after 6 years.

I am quite nervous about it. Being told that with 50% deposit should not have any problems with Nationwide/Skipton/YBS....

Lets see though!

foolishboy

..I just meant it wont make any difference, at least not to YBS. All they cared about was that all of my defaults were part of the BR and that I was 3 years post discharge.

They also don't like people with a repossession.

Just dug out the criteria I was sent, this was a few months ago so might've changed:


4. Adverse Credit
All rules relate to each application, not each applicant
MORTGAGE/SECURED LOAN AND/OR TENANCY ARREARS

0 missed payments in the last 12 months
No more than 1 missed payment in the last 24 months
All payments must have been made within one calendar month of the due date in order not to be classed as arrears.
In all cases, payment holidays are to be treated as missed payments, unless they have paid ahead in advance, in which case it would not show as arrears on Insight or the mortgage statement anyway.
Secured Loans with a balance that is in excess of 25% of the existing mortgage balance will be treated as a mortgage and must meet the criteria detailed above.

CCJs

Registered over 36mths ago, maximum 2, maximum value £500 and proof that satisfied within 6 months of being registered (insight or certificate).
DEFAULTS
1 default registered within the last 36mths with a maximum value of £150 is acceptable.
BANKRUPTCY / SEQUESTRATION

We cannot accept undischarged bankruptcies
The Bankruptcy/Sequestration must have been discharged for a minimum of 36 months – max 85% LTV
Insight must confirm that the Order is discharged or
obtain copy of the Discharge certificate as necessary to confirm the date of discharge
If there is an indication of a family transfer e.g. if the vendor is a spouse or other family member pre-bankruptcy the case should be referred to a Central Underwriting Department Underwriter. Bankruptcies are now generally discharged after 12 months but proof of discharge is still required.
Sequestration is the Scottish equivalent to Bankruptcy, and is normally discharged three years after it was registered; proof of discharge is still required.
INDIVIDUAL VOLUNTARY ARRANGEMENTS (IVA’S) AND TRUST DEEDS

Considered if satisfied over 36 months and no other adverse
Obtain a copy of the IVA/Trust Deed document or statement/letter produced by an Insolvency Practitioner (IP) to confirm the agreed monthly payment arrangement, satisfactory conduct and final payment date where appropriate.

Existing borrowers may be considered for an additional loan to fully repay an IVA/Trust Deed. The Supervisor/Insolvency Practitioner must confirm that there will be sufficient proceeds to repay the outstanding amount and conclude the IVA/Trust Deed. These cases must be referred to Central Underwriting Department at enquiry stage.
POSSESSIONS

Applicants who have had a property repossessed will not be considered.

Eve1975 wrote: »

You say not to wait for 6 years.

The reason I am is because of my credit file. Until the 6 years are up my defaults and missed payments are still showing on my file so after the 6 years these will be gone so my file will look a lot healthier.

You are right about the rates though. I could apply now and it is the same as it will be after 6 years.

I am quite nervous about it. Being told that with 50% deposit should not have any problems with Nationwide/Skipton/YBS....

Lets see though!