Looking for a mortgage after Bankruptcy

Melz123

Me and my husband have been discharged from our Bankruptcy 3 years in January and would like to buy a house and have a £60,000 deposit and just want to know if this is possible are there Mortgages companies out there that could help us as really don't know where to start, hoping you can help?

philnicandevan

Have you tried speaking to an independant broker?

[Deleted User]

Have either of you ever had a house repossessed? If so you'll have a very hard time.

You haven't posted the approx LTV you're looking at - that will help people give you some idea. 20% deposit absolute minimum, and even that may only be from the January coming (I assume you were discharged Jan 2013??).

3 years since discharge (4 since bankruptcy date) 20% down seems to be a good minimum requirement. Ultimately it will still come down to affordability, they'll be harsher than usual with income multiples & stress testing a interest rate rise.

See https://forums.moneysavingexpert.com/discussion/2918012 - a very positive thread, although OP had been discharged for presumably 4 and a half years. In any case it was approx 5 & 1/2 years since BR date.

Bath Building Society are on that list for example - They are still BR friendly and will consider you once you have been discharged for 3 years.

You will need the lending criteria of lenders to assess your chances. You can either use a broker (make sure you get some recommendations for an independent one with experience of bankruptcy & adverse credit mortgages) or do the leg work yourself.

In terms of approval chances, no idea if using a broker will give you a better chance of approval at some lenders?? Some lenders don't care if you are via a broker or direct

Best of luck - unless you urgently need to move, I'd consider waiting until January if January will be your 3rd year since discharge. The first 3 years are very hard as in the grand scheme of things it's not *that* long ago.

boltonangel

Hi

We're awaiting exchange of contract on our new build.

I was declared br in 09 and received early discharge in Dec 09.

We needed to buy a home just before the 6 years were up for my credit file.
I was rejected by Nationwide because I hadn't ful
ly cleaned my file up (there was a £90 overdraft on there that I ignored)

The broker we used was useless and as a former mortgage advisor I started reading the lending policies of small building societies. I stumbled across Chorley BS and matched the criteria so after lots of questions and proof of all sorts of things we got approved. The rate is fairly high compared to what's out there but I consider that a short term pain that enables us to buy again.

We only had a 5% deposit as we're using the help to buy scheme.

leighblue

Without knowing your full details, it isn't possible to say if a mortgage is or isn't possible

However a mortgage is possible for a discharged BR, min 1 year discharge, with a 25% deposit.

The big factors are what caused your BR & how feasible is your application - income, outgoings, stability etc

kurust31

Hi I was discharged 4 years ago and got a mortgage with the Yorkshire Building Society. Loan to Value 58% and credit file had to be completely cleared up. Just phoned them up and all went smoothly. Hope same goes for you.