Trying to get a mortgage after bankruptcy

LEECALL82

I was discharged from my bankruptcy 7 years ago now. It does not even show on my credit file and my credit file is now at a fair credit score. Now I am trying to get a mortgage on the council flat I live in and I get 54% off the market value. Yet the bank I am with have rejected me straight away because of my bankruptcy. Any ideas ????? Thanks.

Foxy-Stoat_3

You'll need to go to a whole of market broker with a 25% cash deposit of the purchase price.

LEECALL82

Thanks,If my flat was valued at 60000 and the council let me have it for 25000, would the 35000 equity act as my deposit?

colmac71

Hi Leecall82,
Have you got your credit reference files from all 3 agencies?
It could be the case you have an old default lurking if the creditors from your bankruptcy adjust the date back to your bankruptcy.
Don't do any more applications until you have all 3, then approach a broker (Such as Dave Ham who posts on MSE quite a bit) for advice.
If you search this forum you'll see a few success stories of people obtaining a mortgage whilst within the 6 year period (usually with a hefty deposit) and even a case of someone who has just past the 6 year who got a 95% mortgage (on the government help to buy scheme).

Foxy-Stoat_3

LEECALL82 wrote: »

Thanks,If my flat was valued at 60000 and the council let me have it for 25000, would the 35000 equity act as my deposit?

No, when you take out a mortgage it will be 25% of the purchase price. The flat will be valued at £60,000 after the 5 year period is up so when you re-mortgage your LTV will drop quite a lot.

In any case £6250 isn't a load to find in the scheme of things....I had to drop £30,000 for my purchase!

2kadmin

Hi,

Something doesn't really sound right there after 7 years it should be completely off your credit file, I agree with colmac you need to check all three. Other than that how long have you been rebuilding your credit? It could be a lack of credit history, failing that your bank could have it marked on there internal systems meaning they will always reject you for everything.

It is possible and hopefully we can help you to a resolution Foxy is spot on with the broker as well.. If you are 100% your credit file is in order then a all of market broker has to be your next step.

Fingers Crossed for you.

bigjl

LEECALL82 wrote: »

Thanks,If my flat was valued at 60000 and the council let me have it for 25000, would the 35000 equity act as my deposit?

Not as far as i have been led to believe.

That is a discount not a deposit.

Buying your local authority property needs a good broker as not all mortgage companies will lend on them.

I would suggest that you may need at least a 10% deposit. Maybe more.

10% of the purchase or post discount price.

Do you actually have any deposit to out down?