4 Years Discharged and can't get a Mortgage

Edsindebt

Hi all, Im back again. I really thought I'd come out the other side but things just keep reminding me of that very awful day 10/12/09.

So here's the story:

I went bankrupt 10/12/09 after a lot of problems.

Included debts were:

Overdraft with HSBC sold off to MCS (Who was HSBC)
Loan with HSBC Sold off again to MCS (Who was HSBC)
Mortgage Shortfall after Voluntary Repossession with (Abbey)

Total Debts were around £50,000.

I spent months chasing banks and I've done all Credit file clean ups etc.

I was discharged 16/09/10

So heres the current problem.

So years on I have retrained as a plumber and spent 4 Years building a successful business. I am a sole trader and the last 3 years profit are as:

2012/13 = £8,000
2013/14 = £9,000 (But bought a Van @ £10,000)
2014/15 = £28,000

With the figure looking good We, i.e me and my partner want a bigger home for our family. We've looked around and found our dream house. We have had Mortgage in Principals with TSB & now West Brom. (Both have declined during application)

Here's the facts.

With the sale of my partners House we clear £38,000.

My partner is a part time nurse and Earns £17,500 Basic but clears £24,000 with night duties etc.

I also have £18,000 in savings.

Each time we have applied for a mortgage of 84.9%. Deposit of £30,000 and Mortgage of £167,000.

The first instance we went through a recommended broker, I asked about TSB as I'd previously spoke to their underwriters. But she assured me all would be ok. (It wasn't and I got Declined) I believed she hadn't declared my bankruptcy and played the credit scores. She denies this.

So with reservations I went to a second Mortgage adviser, she looked at our case and found lenders who would lend with terms to discharged bankrupts min 3 years. hence the application with West Brom. They have refused based on "Third Party Information" and will not disclose the reason. Can anyone enlighten me on this? I don't understand how you can solve something if you don't know the problem. Is it because my previous mortgage adviser has committed fraud on my behalf? How can I prove this or even correct this. Please help as we are lost and upset like it was 10/12/09.

Who and where can I get the information needed?

Our credit files show nothing of concern, apart from the mortgage companies searches.

My score was 997, now 969!
My partners was 999 now 985!

Nothing else on there. (My Bankruptcy of Course)

Is it because my house was repossessed? Albeit voluntary, is this a never get a mortgage problem.

Please help.

betterdaysahead

My home was voluntarily repossessed and I'm interested in how this affects things too. I am still undischarged (hopefully AD next month) and would like to be in a position to buy in approx 4 years or so. I wonder how a repossession can be found out though unless you tell them - on the London Gazette it only lists the BR date - no exact details of cause of BR or amounts or anything like that.

dancingfairy

Have you checked your files with all 3 credit reference agencies?
There are 2 main possibilities:
1) there isn't enough information on there to show you have rebuilt your financial life. Are you on the electoral role? Do you have mobile contracts? Have you had a credit builder or other credit card which is paid in full each month? Have you moved jobs recently or home (both of which can affect your chances of getting a mortgage). Being a sole trader makes things more tricky too as it's not the 'norm' Are you filing accounts? I would have thought you would need to provide a certain number of years worth of accounts? To be honest with one of you part time and one self employed and a bankruptcy and house repossession, it's making things a lot harder before you start, I'm afraid.
2) The other possible thing is some kind of fraud marker/suspicion.
Have you ever been a victim of ID fraud or had any cards stolen? Has there ever been any suspicion on you for fraud?
Have you ever had anyone else's info added to your credit file or received strange debt collector's letters?
I have to be honest my first thought from what you've said is that there is something untoward lurking in the background.
I believe you can check you National Hunter credit file to see if there is anything on there in terms of fraud etc.

df

Edsindebt

dancingfairy wrote: »

Have you checked your files with all 3 credit reference agencies?
There are 2 main possibilities:
1) there isn't enough information on there to show you have rebuilt your financial life. Are you on the electoral role? Do you have mobile contracts? Have you had a credit builder or other credit card which is paid in full each month? Have you moved jobs recently or home (both of which can affect your chances of getting a mortgage). Being a sole trader makes things more tricky too as it's not the 'norm' Are you filing accounts? I would have thought you would need to provide a certain number of years worth of accounts? To be honest with one of you part time and one self employed and a bankruptcy and house repossession, it's making things a lot harder before you start, I'm afraid.
2) The other possible thing is some kind of fraud marker/suspicion.
Have you ever been a victim of ID fraud or had any cards stolen? Has there ever been any suspicion on you for fraud?
Have you ever had anyone else's info added to your credit file or received strange debt collector's letters?
I have to be honest my first thought from what you've said is that there is something untoward lurking in the background.
I believe you can check you National Hunter credit file to see if there is anything on there in terms of fraud etc.

df

As above our credit files are clean with very high scores. There is no links to fraud etc. We have been offered a mortgage in principle based on our credit score so exceeded that stage.

The problem occurs during application process, to which they use "Third Party Information" shared between mortgage companies.

We were concerned that if our first mortgage adviser had not declared correct information we me be put on a "fraudulent list". But how can we find out.

I spoke to my mortgage adviser late last night and ran through a few things and may have found the cause. She will look into this more today. She believes I'm on a third part database for my repossession. Thus most lenders will not lend having a previous repossession.

But this would be a simple mistake, neither mortgage adviser asked about the whole bankruptcy. Just when and discharge date. So I never said I had a voluentry repossession. If I had filled the forms myself I would no doubt have seen the question.

Fingers crossed this is the cause and we can do something about it.

Pixie5740

There's no such thing as a universal credit score so it doesn't matter what number Experian, Equifax or Call Credit assign to you.

Yes, having a property repossessed will probably cause you more problems than the discharged bankruptcy.

[Deleted User]

I'd imagine it's the property repossession

Also your credit 'score' (as Pixie says that's as useful as a chocolate fireguard) is worryingly high. With bankruptcy still on your file I'd be amazed if you actually 'scored' that highly with lenders (e.g. in the top 5%!). Even if you did - that doesn't take into account that you're self employed (which would lower it)

Normally, if it's that 'high' (keeping in mind that these scores are fairly useless, but can be an indicator) - as dancingfairy questioned, have you rebuilt your credit profile? Do you have credit cards? Any mobile phone contracts? Bank accounts with overdraft facilities? Any other finance?

Having worked in a bank, with repossession, self employment & part time partner I'd be very surprised if you got one at 84% LTV.

With your circumstances, I'd be aiming for closer to 70-75% LTV I'm afraid Bear in mind that even when bankruptcy falls off, you're normally asked for 'have you EVER been bankrupt', so again you'll probably fly through the AIP stages, but at full-app you might struggle

All the best though, I hope it works out for you

Brock_and_Roll

To be honest I agree with Somerset above:

Sole trader + relatively limited trading + Ex-bankrupt + previous repo + part-time partner + relatively small deposit = high risk these days.