Ex Bankrupt and Mortgage

J90BMH

[FONT=&quot]Good Morning all, this forum helped me no end in the initial process and now 5 years on im back to squeeze a little bit more advice from it!

Looking at buying our house using right to buy, i have checked my credit history and my bankruptcy will not leave my file until 6 years from the settlement day (May 2009).

How is this going to affect my chances of getting a mortgage? I have kept a clean record since being discharged and have a cc I have been using and paying off regular.[/FONT]
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[FONT=&quot]I currently work three days a week and also attend college two days a week to complete a HND. The mortgage repayments and other costs are less than our rent so it’s a no brainer in my eyes, just don’t want to get rejected and mess up any future chances.[/FONT]
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[FONT=&quot]Do i wait a year or do i go for it?[/FONT]

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[FONT=&quot]Thanks in advance,
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foolishboy

There are companies that will lend, YBS approved me 5 years post-BR with it still showing on the file. At the time though they were about the only one who'd touch me. They also wanted a very chunky deposit, if you search for my previous posts I posted their criteria at the time. One big caveat is that although they would consider exBRs the would not entertain anyone with a repo in their past.

Rent being less than mortgage, while logical to you, isn't a guarantee however. I just had an application interview with YBS for potential extra borrowing and the process was pretty intense and the amount offered far less than the surplus income would suggest.

Rejection won't mess up any chances, there's nothing wrong with testing the water within reason.

HTH
FB

J90BMH

Thank you for the advice. I think from doing some reading up its worth waiting, it's not long and I won't loose much unless house prices rocket in the next year.

Even though, surely the discount would count towards making the deal more favourable?

Does the record drop off six years from discharge or from the court date?

National_Debtline

Hi there,

The bankruptcy should fall off six years after the actual order date. So, by my calculation in around eleven month's time. I'm no financial adviser (debt and financial advice are two totally different animals!) but I would agree that hanging fire will be very much worth doing. If house prices do go up a little you should be able to counter that with a far more favourable mortgage deal. Do shop around though.

Best wishes,

David @ National Debtline.