Mortgage after bankruptcy and repossession

Scout15

Hi

My bankruptcy has fallen off my credit report this November. (Declared 2008.) and my home was repossessed December 2008. (account end date May 2009). Huge relief,

Is it entirely possible to obtain a Mortgage ever again. If so what would you recommend I'd need to purchase a house between 120-180k. I earn 60k a year and have managed to save 20k so far.

Thank you in advance to any replies

mortgagesteve

Hi Scout15,

Yes and possibly up to 95%.

If there was a balance outstanding when the property was repossessed, you may have to get a letter saying they will not chase you for the shortfall.

Regards
Steve

Westminster

Presumably this is a limiting factor though as I would have thought all lenders ask the question of whether you have previous been bankrupt or repossessed?

Blonde29

Scout15 wrote: »

Hi

My bankruptcy has fallen off my credit report this November. (Declared 2008.) and my home was repossessed December 2008. (account end date May 2009). Huge relief,

Is it entirely possible to obtain a Mortgage ever again. If so what would you recommend I'd need to purchase a house between 120-180k. I earn 60k a year and have managed to save 20k so far.

Thank you in advance to any replies

Hi,

I had the same thing happen to myself.

Bankrupt Sept 2008 and my home was repossessed Oct/Nov 2007.

I have been looking at so many different lenders criteria's.

The best i have seen is Leeds Building Society, as they accept ex Bankrupts and possessions as long as it was over 6 years ago. I must point out though that i have got to wait until Sept 2015 until i can apply for a mortgage with them as there criteria is as follows:

Bankruptcy / Individual Voluntary Arrangement (IVA): The Society does not accept
applications for individuals who are subject to:
• A Bankruptcy Order unless discharged more than 6 years ago
No previous property taken into possession within the last 6 years.

My husband and i will also be looking at putting between 15-20% deposit down on a 176,995 house, its always best that some of your deposit is from your own savings rather than equity from a previous property or a gifted deposit (this shows the lender that you are good at saving a managing your money)!

Hope this helps a little & Good luck :j

Newlywed_Saving_Ninja

Yes it is possible. My husband was declared bankrupt May 2008, but has not had a property repossessed. We were approved for a mortgage with Nationwide last month. I won't get in to the fact we are having to go through an application again with them due to the first property we were buying falling through! STRESS! But even so, the DIP this second time went through fine within half an hour on the phone. Full application appointment is next Thursday morning, hoping it goes as smoothly as it did first time around, fingers crossed!

Blonde29

Newlywed_Saving_Ninja wrote: »

Yes it is possible. My husband was declared bankrupt May 2008, but has not had a property repossessed. We were approved for a mortgage with Nationwide last month. I won't get in to the fact we are having to go through an application again with them due to the first property we were buying falling through! STRESS! But even so, the DIP this second time went through fine within half an hour on the phone. Full application appointment is next Thursday morning, hoping it goes as smoothly as it did first time around, fingers crossed!

We recently had a decline with Nationwide after nearly 5 weeks of waiting. I was appalled by the level of service (i will not get into it, i will be here all week). Best criteria i have found for both Bankruptcy and repossession is Leeds Building Society. YBS also turned us down.

My credit file is really good now too as i went through it like a fine tooth comb and my husbands is excellent (he has a mortgage in his sole name at the moment) No arrears etc (EVER)! However they still chose to decline....

We have decided to wait until next year now and save a bit more, plus then it will be 6 years post Discharge for me :T

miss_sparkle

I don't have any experience of repo as we kept our house but we have just obtained a £265k mortgage with nationwide at 75%, we used help to buy and put down 5%.
We were declared br in April 08, moved into our new build last week

Our credit files were good, no missed payments or negative marks since our br, used a broker which I think really helped & was much less stress free