Mortgage 7 years after bankruptcy

chadman2006

Hi All

Has anyone ever obtained or know anyone who has obtained a mortgage from a high street bank/building society years after they were discharged from bankruptcy?

I will be 7 yearrs discharged in a few months, so i want to know if its worth my while pursuing a mortgage.

Thanks

debt_doctor

Hi,


I just got one with the Halifax, at their standard rate, I'm 8 years discharged. They weren't much interested in the BR (or the repossession) - just said "well that was a long time ago".
Credit score of at least 'good' on Experian is absolutely essential if applying to Halifax.


DD

chadman2006

Hi
Debt Doctor

What deposit did you have percentage wise?

2kadmin

Hi,

7 years out you should be all good I would think, depending on your credit file since BR.

I'm with the Nationwide, 4.29% 2yr fixed rate with 10% down. 5 yrs 2 months post BR.

Background
I moved 3 times post BR to ensure that I got a new credit file rather than clean up the old one, just waited out the solicitor S16 search which is 5 years then I was all good.

Wasn't asked the direct BR question by broker who dealt with my mortgage, they did a credit search for a DIP based on my addresses and salary over the phone. During the application they even joked that they knew I didn't have any credit problems, as the DIP was OK.

As an aside I have a DIP from lloyds as well as one direct from Nationwide, these were both from appointments with the branch mortgage advisers neither of which directly asked me if I had ever been BR.

Checkmyfile showed credit score of 843 for both Callcredit and Equifax at the time of application.

2k

jumperjohn

chadman2006 wrote: »

Hi All

Has anyone ever obtained or know anyone who has obtained a mortgage from a high street bank/building society years after they were discharged from bankruptcy?

I will be 7 yearrs discharged in a few months, so i want to know if its worth my while pursuing a mortgage.

Thanks

I obtained a mortgage 8 years after BR from HSBC at 2.75%, I have good credit records, no late pyments etc. Salary good and 25% deposit.

Bankrupcy question wasn't asked so I didn't divulge.

unsure100

A question for the three posters that obtained a mortgage from Nationwide, HSBC and Halifax.

Were they one of your previous creditors?

Thanks

NorthernOne

I got mine with the Leeds building society after 7 years.

Made sure I had 10% deposit and totally clean credit file.

Good luck

sab218

Can I be a plonker and ask what a DIP is? Also do you not need to declare bankruptcy but only if they ask after 6 years? Good news about your mortgage that's such great news that there's hope for us out there lol!!! Did you enquire with lots of companies direct or go through a financial advisor or just strike lucky with your particular bank? I'm worried that more searches etc will go against the ever darkened credit file?

jumperjohn

sab218 wrote: »

Can I be a plonker and ask what a DIP is? Also do you not need to declare bankruptcy but only if they ask after 6 years? Good news about your mortgage that's such great news that there's hope for us out there lol!!! Did you enquire with lots of companies direct or go through a financial advisor or just strike lucky with your particular bank? I'm worried that more searches etc will go against the ever darkened credit file?

Good questions.

We didn't use a broker, we have used them twice before and thought that onboth occasions they were a waste of time, convoluted, not well informed and gave badadvice.

I applied through my bank, Frist Direct, and they were excellent. They askedall sorts of affordability questions and looked at our history and so it seemswe were good candidates for a loan.

Not all bankrupts are bankrupt through bad fund and credit management, sometimessituations, like an end in marriage, can be catastrophic. I think banks areaware of this and the six year rule seems to apply. If you hold good accounts,can afford the repayment and have a good deposit then you are deemed as lowrisk.

National_Debtline

sab218 wrote: »

Also do you not need to declare bankruptcy but only if they ask after 6 years?

Hi sab

In our experience, prospective mortgage lenders will invariably ask "have you ever been the subject of insolvency proceedings i.e. bankruptcy?"

It seems jumperjohn was not asked but I would say that was the exception not the rule. Lenders can, after all, search back through old Insolvency Register records if they really want to know. If you are asked the question, you should answer it honestly, but as we are seeing from some of the posts here and on other similar threads it often doesn't bother the lender if you were bankrupt once upon a time.

Dennis @NDL

needalittlehelp

Hi chadman2006,

Just wanted to let you know I have just been accepted for mortgage and got my mortgage offer through today :T

It will be 6 yrs from my bankruptcy at the start of may this year

Cheers,

needalittlehelp