Applying for a Mortgage, but i am an ex bankrupt and had a house repossessed

Blonde29

Hi,

Wasn't quite sure which section of the forum to ask this question on, but considering its more to do with a mortgage application this may be the best place!

I will cut to the chase - Just over 6 years ago i went bankrupt and was discharged 12 months later, the previous year i also had my house repossessed. I was extremely young at the time and my ex (who i had the joint mortgage with at the time) went through a really nasty break up, he left me in such a financial mess! We had a joint bank account also at this time and when my wages were paid into this account he would draw majority of it out to spend elsewhere knowing we still had the mortgage among-st other bills to pay. I was the one trying to stop Halifax (mortgage lenders) repossessing the house but we fell that far behind it eventually repossessed. I unfortunately learnt the hard way and have definitely paid the price.

I am know happily married and my husband already has a house in his own name. We have just applied for a mortgage through YBS and it has been referred.

I have cleaned my credit file with both Experian and Equifax and my bankruptcy and CCJ, default has now been removed from my credit file. I have basically gone through my credit files with a fine tooth comb and my husband has an excellent credit history.

The question i have is due to the mortgage application being referred does this mean that they may accept someone who is an ex-bankrupt and also had a property repossessed? I know that every lender has different criteria's, however if they were to not accept someone who has had there property repossessed in the past would this be an automatic decline?

One further question, due to my husband having a mortgage already (10 years) and never missing a payment and having an excellent credit history will this help towards the application?

Just to add we also have a 10% deposit to put down towards the new house!

If anyway can help or had a similar situation i would really appreciate

ACG

Did you check YBS criteria before applying?
The fact it refers means its not an outright decline which is a positive.

I would say if your application is declined, speak to a broker. There may be lenders who will consider it.

Its not a given and will come down to the rest of the case but there is some potential.

Blonde29

Hi,

Thanks for the reply

We are using a financial adviser who is very reputable, and he was aware of my circumstances.

The application its actually Accord but the underwriter is YBS.

This what it states under their criteria - CCJs/Court Decrees
Only one is acceptable if the maximum value is £500, registered over 36 months ago and satisfied.

Defaults
1 default registered within the last 36 months is acceptable subject to a maximum value of £150.

It also states that they do not accept undischarged bankruptcies (which i am an undischarged and have been for 5 years)

So i seem quite positive about the above, however the one thing that confused me slightly was it did say - Customers who have had a property repossessed in the past cannot be accepted for mortgage purposes.

Does this mean that they will not accept if my house was repossessed with them the time this happened or at all regardless who i had my mortgage with?

Thanks

ACG

It sounds like your mortgage will not get offered then? Unless your broker has had something agreed maybe or not disclosed the repossession?

Blonde29

I have disclosed everything including.

I have been bankrupt had a CCJ and had a home repossessed, this is what confused me, surely if i have answered yes to these questions it would have declined immediately?

Also it said "customers" who have had a property repossessed in the past cannot be accepted for mortgage purposes. I have never been a customer of there's!

ACG

Unless your broker has not declared them.

I would ask for a copy of the application form if you have not already had it - check it has been disclosed if the question is asked.

Blonde29

He declared everything to them as i was present when the application was put through and it came back as a straight referral. This was only done last night and have been advised i will know by this Monday!

It's the not knowing that is the hardest

ACG

Seems odd but its just a case of waiting and seeing how it goes.

Blonde29

I know,i have been scratching my head all day!

I will soon find out and i will post a reply once i have an answer, for other people who may need to know

Thanks for your replies and advise

amnblog

This is puzzling and I wonder if there is some confusion here.

Accord can accept bankrupts discharged for 3 years as they are one of the few lenders with a shorter timescale on this issue.

They do not accept applicants with a previous repossession.

Blonde29

Sorry if this comes across blunt - I understand that this is why I would have thought the application would have come back as an instant decline rather than a referral, due to me answering yes to the question "have you had a home previously repossessed"