buying with partner - help!

minimayhem_2

Hi there!

looking for a wee bit of advice!

i was declared bankrupt last July and this was discharged in february. i basically seperated from my ex and there were a few debts he had taken out in joint names and defaulted on and unless i wanted to be saddled with half of his debt, i had no choice.

anyway, i now have a lovely brand new shiny partner and we have decided to buy a house together. he has a house of his own which he is selling to buy a bigger house and we decided it would make financial sense to purchase together.

I have spoken to a mortgage adviser who is coming to visit us tonight and told her i have a bad credit rating (didn't mention the BR) and she said that she is sure she can find us something. the thing is, my fella can get the mortgage we need (£112k) on his own and we may put it through as him on his own and just have something drawn up to say i co-own the house BUT unless he sells his place, we will need £133k and he can only get £127k on his own! yikes!

also, i have not told my fella about the bankruptcy because it was about to be discharged as i met him so i didn't ever need to mention it!

so, firstly i would like to know:
Do i need to mention bankruptcy to the mortgage lady - is it enough to just say i have a poor credit rating as my bankruptcy is now discharged?
Will my bankruptcy affect how much we can get - and the rate we can get - on a mortgage?
If i don't mention it, will it come up in the legal process if we buy together? (I noticed in the fees there is a £2 charge for a bankruptcy search - i assumed this is a credit check)

thanks

CB1979_2

well I would defo tell the FA as I'm sure it'll still show up on your credit history.

and there's nothing like starting afresh and not being honest with a serious partner (I assume as you're buying a place together).

I would defo tell him, imagine what it's gonna be like if the FA mentions it in front of him and you haven't even told him!

olive84

The £2 bankruptcy search is done by your solicitor in between exchange and completion to check that your vendor hasn't gone bankrupt and therefore would not be in a position to sell the house.

lynzpower

I cant believe you are about to buy a house with someone but you havent told them that youve been bankrupt? It staggers me how people jsut move in with each other at the drop of a hat- tie their financial dealings together till time immorial - but cant bring themselves to be honest. Banrupcy is A huge THING to have happened, it must have taken over your life at some stage- and you havent told him ?

minimayhem_2

I know it seems really awful that i have not mentioned the bankruptcy but as far as i am concerned it's all done and dusted. i have done a search on insolvency.gov.uk and mine isn't even listed there anymore.

I have mentioned the fact that i have a bad credit rating and the FA will not know anything about it tonight will she? i think i will tell him but i need to find the right way to bring it up!

lynzpower

It might not be stil there, but I expect that given your status you should expect to be paying higher interest rates on a "subprime" market lender. Im not sure, but I guess this is the case, as Ive read it elsewhere here.

are you certain that he will be happy to tie his financial dealings in with you given your history. I have the greatest sympathies for many people who have been bankrupt, do not get me wrong, but I would do everything I could to avoid tying in my finances with someone who is BR ( especialy in the early days) as it generally means poorer VFM and an impact on my own CR.