Mortgage following Bankruptcy

Jaguar1966black

Hi First post so please bear with me! Would love some advice prior to going to a broker as we are really in the dark on our chances of getting a home that’s ours.
I am a discharged bankrupt from a failed business (declared February 2010, October 2010 discharged) we are currently renting but we want to get a mortgage. I am 48 and my wife 49 years old. We have banked at Barclays for over 20 years and they supported me throughout the bankruptcy.
We have £23,000 saved for a deposit and looking at houses between £200,000 - £230,000; so 90 % or better LTV. Combined earnings are £70,000 per annum.
Current liabilities are £5,000 overdraft (reducing slowly) £5,000 credit cards on my wife’s side, no other debts or loans. Looking for advice on best time to apply and whether we should get rid do more reductions/ consolidations of debts prior to applying. Main thoughts are:

• Scared to death that we are getting older and a 15 year mortgage is the limit of what our repayments can afford so don’t want to delay but even after the 3 year period concerned that we will further worsen our credit score if we apply and get knocked back
• If it is possible to get more than 15 years due to our age?
• Will my wife applying for another a 0% credit card to consolidate the card debt affect our mortgage chances?
• Do we need to attack the overdraft before applying?
• With the advent of the new mortgage checks is it actually worth pursuing at this time or wait for the ‘magic’ 6 years after discharge?

Any help would be greatly appreciated – so many thanks in advance

ACG

It should be achievable.

Personally i would say to keep credit searches to a minimum. Speak to a broker as finding the right lender is important... some will decline others will consider depending on the rest ofthe case.

Jaguar1966black

Hi ACG - thanks for the quick reply. we will leave all as is. Being realistic what % rates would you anticipate for a benchmark?

Jaguar1966black

Any further advice on the mortgage term as well. I will be working till late sixties but my wife wont be!

ACG

Because of the age you will be limited but i would suspect normal rates.

Adverse lenders dont do 90% mortgages, so you are going to either be looking at more lenient high street lenders or more quirky small building societies - either way the rates will be fine.

Jaguar1966black

Many many thanks

deejaybee

I got 17 year mortgage at age 53 with Woolwich.

Was approx. 8 months ago, so obviously pre-MMR, if that makes a difference.

Wh05apk

You should be able to get up to about age 67/68 quite easily, but I would be amazed if currently you could get a 90% mortgage with a bankruptcy in the background.

Jaguar1966black

Hi WH05apk - this is 180 degrees different to previous advice so is this time related or just never??

ACG

Jaguar1966black wrote: »

Hi WH05apk - this is 180 degrees different to previous advice so is this time related or just never??

Im not sure I worded this as well as I could.

Im not saying it WILL be achievable. Im saying I think there will be a few lenders who will look at it. As there are no adverse lenders available at 90% it would be a case of normal rates or nothing.

It will come down to the application as a whole, its important everything else is spotless, your not looking to stretch the amount you can borrow by any stretch of the imagination, your in good stable job(s) etc etc.

Personally I would not rule out getting a mortgage but I think the options are going to be quite limited.

Mortgage_Mark_2

There is no 'magic' 6yr period for bankruptcy. There's a bankruptcy register that you will always be on, and that your solicitor will check against when doing the conveyancing for the property. Most lenders have a question along the lines of "Have you ever been made bankrupt?" and this will confirm the answer to that question.

Bankruptcy appears on your record for 10yrs, not 6, but is then always on the register, just be careful that you don't adversely affect your chances around this 6 years period.

I would think you would find it nigh on impossible to get a 90% LTV mortgage with being discharged from bankruptcy 4yrs ago, but good luck with it.

Nationwide will consider discharged bankrupts, as will Skipton BS (I think). We are advised by our Halifax BDM to answer the 'Have you ever...' question as 'No' if it is long enough ago that it doesn't appear on your record - definitely speak to a broker as these kind of quirks could help massively.