Mortgage advice

Salander

Hello all,

I wonder if you can help?

My wife and I are hoping to buy a house soon.

I have 10,500 in a Nationwide Save to Buy account, this is joint with my wife.

In theory this would get us a £200,000 mortgage.

We have between us 5,000 credit card debt (hopefully down to 2K in June)

I earn £45,000 and my wife earns £20,000 (although this will go up to £33,000 in September)

We have had clean credit reports for 5 1/2 years but prior to that we were both declared bankrupt when our business failed. There was no repossession.

Questions:

Will the bankruptcy make any difference as to whether we are accepted onto a mortgage?

Will that amount of credit card debt make any substantial difference?

Essentially is it worth waiting until the debt is gone / lower and the bankrupcy is off the record or will we ba accepted anyway- so just go ahead now?

Alternatively, does it matter? If I applied now and was turned down would that substantially affect my rating in 6-8 months?

I would especially appreciate help from brokers..

Thanks for your help!:)

Thrugelmir

Personally I would clear the debt from savings and wipe the slate clean. If you are hoping for a 95% LTV then debt may be a hindrance to your application.

With regards to the bankruptcy I would suggest you ring and ask. Even if the bankruptcy has dropped off your credit history. You will be asked this question on the mortgage application for......have you ever been?

As your income increases substantially in September. Should be possible for you to save far more in a short space of time boosting your deposit. Thereby making yourselves a more attractive lending proposition to the NW.

Salander

Thanks Thrugelmir,

I am sure that is good advice, anybody else? Particularly about the questions at the bottom?

a couple of points :

(our deposit money is in the Nationwide Save to Buy account, and as such if I take it out to pay off the CCs then the account is closed and I can't benefit from the 5% mortgage offer- including the £1000 cashback)

I am worried by the Halifax's decision to turn all ex Banrupts down irrespective of all else- will other lenders follow suit?:(

If this is likely then we should get a move on!

tom1984

hi did you have any luck with this? in a similar position myself with nationwide save to buy!