Rebuild a new credit file while bankrupt

smallville_hero

I am currently an undischarged bankrupt.

I have a four yr restriction imposed so to start rebuilding my Credit I am looking at a minimum of ten years which I am not best pleased about.

Ideally I would want to buy a house in the future.

I stumbled across a post on here saying that someone accidently built a new credit file by opening a bank account with a new address that is not attached to previous addresses.
If this is the case, is it possible to build a new credit file from scratch, get a good credit record on it and then apply for a mortgage??
Or does anyone know how to apply for a mortgage while undischarged or if it is possible to rebuild credit while undischarged?

Conor_3

Fraudulently, I suppose it's possible as you're usually asked for previous addresses on mortgage applications so would deliberately have to lie.

Depends on what type of person you are.

wherediditallgo

The mortgage application is very likely to ask for previous addresses, so the only way you could hide your connection to previous addresses linked with your debts is to lie about them. As an undischarged BR who's already living with a 4-year restriction, you could get yourself in very big trouble. If I were you, I'd look for a mortgage provider & tell them you're BR - you'll probably have to pay a higher-than-average interest rate, but at least you'd be doing it the honest way. If you go the dodgy route & then hit financial trouble, your mortgage provider is likely to be extremely intolerant if they find out at that stage about your past. Also, the OR wouldn't be remotely impressed.

You've got a 4-year BRO already that you're finding uncomfortable to live with. How would you cope with a 15-year one (the maximum they can impose), plus the risk of criminal charges for obtaining money by deception, & the loss of the property you got with that money?

bexcarl

hello

iv been asking the same kind of question, i just been discharged and looking for a new start with a new partner and this would be by getting on the property ladder together.
iv had some FAB! advise and some really nasty replies but im told the Bankruptcy Advise Service have a mortgage broker on tap, this is who intend to get intouch with.

good luck and take care
x

smallville_hero

But surely If you get a mortgage as a disclosed barnkrupcy the rate is double?

smallville_hero

and if you cant pay a mortgage repayment why would they start looking into your credit history?

gettingitsorted

I would suggest that you contact the Bankruptcy Advise Service before you go down the route of something that would be seen as fraudulent,iv not actually heard of a Bankrupt obtaining a mortgage whilst un discharged .

smallville_hero

I think the best thing to do is disclose bankrupcy to a private lender and get a mortgage this way.

gettingitsorted

You could try a non fee charging mortgage broker and see what they come up with

wherediditallgo

smallville_hero wrote: »

and if you cant pay a mortgage repayment why would they start looking into your credit history?

It's not that they're going to start looking at your credit history if you miss a payment. It's that missed payments are recorded on your files, & if you don't catch up pretty quickly or if you don't talk to them about it & make arrangements to sort it out, that could cause them to look at your credit file. Also, they often offer loans to some of their customers, so your credit file may be looked at (whether by a human or a computer) & your BR status may get flagged up at that point.

When you buy a property, you have something with a resale value. While many lenders may be very willing to help you address financial problems you may hit further down the road & get back on track, there are also others that won't - they'll expect you to resolve the problems yourself. If their own investigations (whatever the reason for them) result in them finding out that they gave you a mortgage that you wouldn't have got if they'd known you were BR, they won't be happy. Neither will you, because you'll have played with fire & could get severely burned.

One of the restrictions of being BR is that you aren't allowed to obtain credit of more than £500 without declaring your BR status to the credit provider. That applies whether the question is asked or not. To get a mortgage & deliberately complete the paperwork in such a way as to hide your BR status leaves little room for doubt about fraudulent intent. I know living with being BR is hard, but it is the way it is & you could be making things far more difficult for yourself than they need be by going down this route. If you want a mortgage, apply for it the right way, the honest way, or do without.

bexcarl

we have all made mistakes and we are now paying for them by being bankrupt, please dont make another and live under another cloud by misleading any mortgage lender.

there are companys who will consider you once discharged with-out huge interest amounts. you just have to do your research and have a good look around the market.
im not as wise as im sounding, this is all advise iv been given on this web site as very newly discharge looking for a new start.

whats the most you have to wait if your not already discharged? 12 months? use this time to get a good deposit together and to research.

you are just free of a horrid situation (debt) please dont go straight into another.

good luck chuck :0)