Ex bankrupt mortgage.....

exponential

Hi guys.

I declared bankruptcy back in August 2009 with discharge following a year later.
It has been over 7 years now and my files are all clean etc etc.
Have held a few CC's since taking advantage of 0% balance transfers and even have a small loan through my bank with no missed payments whatsoever....anyway I am now considering a mortgage in the no too distant future and would like to know who are ex BR friendly.

I currently bank with Barclays but don't know if they consider ex BR'S. Can anyone suggest a bank or building society that definitely do consider people in my situation as I would like to switch to them now un order to build up a good internal score with them to boost my chances further still.

Any advice would be greatly appreciated.....

(originally posted in Bankruptcy board)

ACG

A lot of the high street lenders will consider your application once you have been discharged for 6 years.

Its a difficult question to answer though as people will just tell you who accepted them which is not really much help. To give 2 examples in the last 18 months...I applied to a lender for someone who had been discharged for 3 years and they had a 25% deposit. They were accepted (although it did initially refer). Around 12 months later, I had someone else who had been discharged for 3 years and also had a 25% deposit and they were declined outright.

2 applications, on the face of it quite similar with very different outcomes. The second application I placed with another lender (a small building society).

I do not think you will have a major problem overcoming the bankruptcy but it will come down to your cirucmstances. Its probably worth getting all 3 of your credit reports (equifax, experian and noddle) infront of a broker. Also bare in mind that lenders criteria can and does change so what might be a good option now may not be in 6 months time.

exponential

Hi ACG.

Thanks for your very informative reply.

I suppose it really does come down to individual circumstances at the time of application and also market conditions.
For me I think having a large deposit will go a long way but it's which bank to bank with which is something I need to get right.

Are Barclays ex BR friendly at all?
I've been looking into Nationwide and YBS and they seem like potential candidates.

What does your personal/professional mind say when it comes to choosing the right bank or building society to build up a good relationship with?

ACG

Barclays/Woolwich stance is:

Lending to a customer with a history of bankruptcy OR who has been the subject of a Debt Relief Order (DRO) or an Individual Voluntary Arrangement (IVA) can be considered provided any bankruptcy, DRO or IVA was registered more than 6 years ago from the date of submission of any mortgage application and no longer shows on the credit reference bureau information.

So in theory you fit criteria based on what you have said - although that is only one bit of criteria. As I said though, it comes down to circumstances. Fitting criteria and passing credit score can be poles apart.

You can find the criteria by putting in the name of the lender and criteria into google. Just check everything, not just the bankruptcy if you are doing it yourself.

Personally I would avoid YBS - in my experience they are quite fussy.

Dont worry about your bank account, if your happy with your current bank just stick with them. 6 months or so is unlikely to be long enough to build up any sort of relationship with a new bank.

exponential

Thank you very much ACG.

Been with Barclays for nearly 6 years now so would be foolish to leave when considering applying for a mortgage. It's not going to be soon but in the not too distant future so needed to know if even considering a mortgage was a waste of time.

Cheers pal.

amnblog

Not sure about your maths.

If you were declared in August 2009 and discharged August 2010, that is not "over 7 years now".

Therefore you do not meet Barclays criteria.

When you need your mortgage you should consult a good mortgage broker.

ACG

amnblog wrote: »

Not sure about your maths.

If you were declared in August 2009 and discharged August 2010, that is not "over 7 years now".

Therefore you do not meet Barclays criteria.

When you need your mortgage you should consult a good mortgage broker.

Very good point. I feel like I should hang my head in shame for not picking up on that :P

I was a little hungover though, thats my excuse

exponential

Not sure about your maths.....

That's why you're a financial advisor and I am not! LOL

Seriously though, I'm not considering it just yet as I am not quite in a position to do so but want to be armed with as much knowledge as possible before I consider it.

Thank you for your valued input, it is very much appreciated.

betterdaysahead

You do meet thec criteria though - it's over 6 years since your BR was registered so it will no longer be on your credit file.

exponential

betterdaysahead wrote: »

You do meet thec criteria though - it's over 6 years since your BR was registered so it will no longer be on your credit file.

That's true, it (along with all related defaults) came off last year. That's one thing I made certain of.
My credit files are looking in good condition at present so I don't forsee any issues....

ACG

Although it has come off, most lenders ask about Bankruptcy.
I have just looked at a Woolwich (Barclays) application form and on the last one I did (around 2 months ago) it asks:

Have you ever been bankrupt?

I think all lenders will ask the same question, so you will always need to declare it where the question is asked, it will only come up on th bankruptcy checks at legals stage anyway so there is no point hiding it.