Can I get a mortgage before the end of my 6yrs of bankruptcy?

Jone7y

Hi,
I'm hoping someone can help please.

I was declared bankrupt in sept 2009 and discharged sept 2010.

Fortunately for me since,I met my now fianc! who has a mortgaged house,and I'm now in a really good job.

I'm aware that bankruptcy stays on your file for 6 years and can prevent me getting decent credit until that time has passed,
But me&my fianc! are desperate to move to a bigger home,
We've got our first baby due in January and the area we live in and the garden we have isn't very secure.

I've taken steps to improve my rating,ie I've wrote letters to all my previous lenders to make sure the information they have on me is correct,and I've also got a high interest credit card.

So my questions are please,

1) can I get a joint mortgage with my fianc!? And if so will I massively be penalised? Ie high interest?

2) can my fianc! apply for a mortgage on her own? But somehow show how much I'm earning to help borrow more? (I know that sounds a naive question but I'm desperate!)

3) or is it best to wait the whole 6 years,build my credit rating up and then apply?

Many thanks in advance.

Annisele

Very briefly:
1) Maybe.
2) Absolutely not.
3) Maybe.

For a bit more detail, are you prepared to say how much deposit you have (as a percentage of the value of the house you want to buy)? It would also help if you said how much you wanted to borrow, and how much you and your partner earn.

kingstreet

Depends on loan to value.

Only income of applicants is taken into account.

That would be the best option, if you can wait that long.

Jone7y

We've probably got around 10,000 of equity in our current property,
Plus we've around 5,000 in savings.
Our current house is worth around 110,000 and we're hoping to look at a house around 165-175,000.

My annual wage is on average 30-35,000 and my partners is 17,000.

Also is it possible just for my name to get added to my partners mortgage,even if we don't move for a couple of years? Will that then help us get a bigger mortgage in a couple of years?

Thanks again,for your replies.

kingstreet

So £15k, less estate agency and legal fees...

On a £165k property, that's under 10%.

You can try a transfer of equity, but you're likely to be viewed the same way by the lender as if you were buying a new property and declined. Frankly, it makes no difference to the future application if you are or aren't party to a mortgage beforehand.

Talk to a broker. Obtain all three versions of your credit file and see if the broker has any ideas. There may be the odd lender who will do this, but it needs proper planning. The bulk of lenders will want to get six years past discharge and a bigger deposit.

Jone7y

That's great thanks for your advice.

How much would you say is a reasonable amount of deposit then please? And are you saying most lenders wouldn't look at including our equity as part deposit?

Lastly although you said most lenders would want me to wait 6 years,would that mean that I'd be charged a higher rate of interest by the ones that would potentially give me a mortgage now?

Many thanks again.

Wallhart

From what you have said I think chances are minute.

Having a default and under 10% deposit.

Risk reward. If something is more risky the lender expects to be paid more. If you do not fall within risk appetite lenders won't lend at all.

Unfortunately you definately meet the higher risk criteria and almost definately fall out of a banks risk appetite.

kingstreet

Jone7y wrote: »

That's great thanks for your advice.

How much would you say is a reasonable amount of deposit then please? And are you saying most lenders wouldn't look at including our equity as part deposit?

Lastly although you said most lenders would want me to wait 6 years,would that mean that I'd be charged a higher rate of interest by the ones that would potentially give me a mortgage now?

Many thanks again.

Amount of deposit will vary from lender to lender. I have included your equity. You said £10k + £5k which I added together and after fees will be less than 10%.

Possibly, on rate.

You really need to speak to a broker. Too many "ifs, buts and maybes" on here. Ask friends and relatives for a recommendation for a whole market broker and avoid high street lenders for rear of multiple speculative credit searches.

Jone7y

That's great thanks again for your advice,it's appreciated.