Mortgages for ex bankrupt

pb8770

Thanks for looking in. Although I'm not proud about my situation, I was forced into bankruptcy in April 2008 by a debt management company as they were not paying my creditors and I was discharged in April 2009. I am hoping to be a home owner once my six years is up so I can start with a clean slate. I have been looking at getting a home via the 'Help to Buy' scheme. The builder uses an agency to handle the sales and I contacted their agency to enquire and was told that due to our situation she said we would not qualify because the lenders won't lend to any one with past adverse credit. This has really dented my hopes on becoming a home owner as the scheme I want to enter in to I would only need a 75% mortgage, does anyone know of any lender that will lend to an ex bankrupt, I know I would be better enquiring after 6 years I am just trying find who does lend then just contact them once my 6 years is up, or even a lender who will loan to an ex bankrupt who has been discharged for over 4 years.
Thanks for your time

Thrugelmir

You cause would be helped greatly if you could save a deposit larger than 5%.

lindsaygalaxy

There are lenders that will lend from 3 years. I am in the same situation as you (with similar dates!). My partner has a good credit history which im hoping will help. The deposit is our main stumbling block, in an area of very expensive houses (£250k for a 3 bed semi).

From memory on here, Yorkshire, Chelsea and a few other building societys will consider from 3 years.

holly_hobby

Ok, even when your 6 yr anniversary has expired, and the bankruptcy order ( BO) disappears from your credit file, you must STILL disclose your bankruptcy, if any application asks you do, no matter how long ago you were discharged. So as you can see a BO never really goes away (which is why they should always be a last resort escape), although as time passes and there is more daylight between the order and your situation today, obviously the better things become and the more attractive you may be to a lender.

Some lenders will consider a discharged bankrupt, some want you to be BOTH discharged with the BO satisfied (ie - you have also repaid your BO and OS creditors before saving deposits, and applying for more substantial debt as a mge generally is).

The secret, along with some daylight between the BO and now, is being able to demonstrate that the financial circs that led you to waking away from your creditors, are now remedied, in the past and no longer relvant to your current financial situation or likely to reappear.

So, you need to consider that this is all about convincing the lender that you are not (or no longer) a high business risk to them, they need persuading that you will duly service your commitment, and not look for the short wayout if things get sticky again ..... which is completely understandable

So to that end, decent deposit, clean history (post BO), decent CRA payment profile record, secure employment - are all how you will demonstrate your worthiness, and eventually get back on the ladder.

If you want to bottom out what your options are, have an hour with a whole of market mge broker, take along your CRA print outs & BO discharge, and let him/her have a gander at what and whom is in the market for you at this present time .... or what you need to do to get yourself back in the pond as early as required .... be prepared for the long haul though ... !

Hope this helps .... wish you well

Holly xx