Help to buy after bankruptcy

bozzathebeast

Hi,

I'm new to posting in here so go easy on me.

My wife & I would like some advice on getting a mortgage after bankruptcy. I know there has been many posts about this & it all depends on LTV, time after discharge etc.

My main question is that the help to buy scheme states it won't consider ex bankrupts until 3 years from discharge date however I have akso heard that only certain lenders will consider lending to ex bankrupts & on certain lenders will use the help to buy.

We could get 20k deposit for a 200k home & with the help to buy deposit we could have a good LTV.

Does anyone know if any of the help to buy lenders will consider ex bankrupts or if it will have to be a specialist broker meaning we'll have to wait until the six year mark or get a hefty deposit & pay a big rate??

All help will be greatly appreciated.

missyp123

We will have our BR fall off July this year.

We plan to approach a 'whole market broker' however we have been saving with NW using their STB mtg account which can allow you to have a 5% deposit if accepted. However we are saving for anywhere between 10-15% depending on tim scales.

We will also be considering the HTB scheme on a new build. A development in our area is beginning and its first phase is set to be completed by summer 2017.

Nationwide accept HTB, so we are hoping if we do choose to buy a new property we will be accepeted.


Yes we could apply direct, but personally we really dont want to risk a rejection on our files after we have worked to hard to clean them up. having an expert look at everything before we move forward will hopefully make all the difference.:A

Cobalt77

Yes we could apply direct, but personally we really dont want to risk a rejection on our files after we have worked to hard to clean them up. having an expert look at everything before we move forward will hopefully make all the difference

In case you weren't aware of it, actual lending decisions are NOT shown on ANY credit reports. All any credit report will ever show is that a lender has run a general enquiry on you, and not the ultimate outcome made by that lender.

However, some lenders may get spooked if they see a lot of general enquiries from different lenders on your report at around the same time (but usually because applying for, say, lots of different credit cards at the same time is frowned upon)

HTH

missyp123

Cobalt77 wrote: »

In case you weren't aware of it, actual lending decisions are NOT shown on ANY credit reports. All any credit report will ever show is that a lender has run a general enquiry on you, and not the ultimate outcome made by that lender.

However, some lenders may get spooked if they see a lot of general enquiries from different lenders on your report at around the same time (but usually because applying for, say, lots of different credit cards at the same time is frowned upon)

HTH

thanks for pointing that out cobalt, thats why i love this site, i learn something new everyday :j

kingstreet

A bankruptcy remains visible on the solicitor's bankruptcy search after it falls off your credit file, so always disclose it.

An independent broker will find you the best deal for your circumstances and if that's HTB Equity loan with a historic bankruptcy they will find the best terms available for that, starting with the high street options.

Cobalt77

kingstreet wrote: »

A bankruptcy remains visible on the solicitor's bankruptcy search after it falls off your credit file

This is a curious one.

If we are talking about a standard K16 bankruptcy search, my belief is this search is purely based on Land Registry records. Whilst the Land Registry keeps records "forever", the £2 search only searches records for the past five years (and I've just had this confirmed by one of my solicitor "acquaintances" - although this doesn't necessarily mean it's correct, lol)

Can anyone else shed any light on this?

kingstreet

I'm sorry I don't know the code number, but a solicitor carries out a bankruptcy search as part of the CML Handbook requirements for most if not all mortgage lenders.

It's usually later on in the process and not long before exchange of contracts. I'll ask some of the other brokers on M&E to add their experience.

ACG

There are lenders who will consider lending after 3 years discharged on the help to buy scheme. That being said, if it is the Mortgage guarantee you are looking at (95% mortgage) rather than the equity loan version, I think the chances of being accepted are slim at best.

Typically I would say anything less than 6 years discharged you are probably going ot need a 25% deposit. There are exceptions and I suppose in the grand scheme of things you have little to lose by giving it a try but I would go in expecting the worst and then anything else is a bonus.

A declined application at this stage, whilst not ideal will have dropped off your credit report by the time you have been discharged for 6 years anyway.

amnblog

A bankruptcy should always be declared to a lender.

Whilst a K16 might have limited search breadth, is not difficult to identify an ex bankrupt.

https://www.insolvencydirect.bis.gov.uk/eiir/IIRSearchNames.asp?court=ALL&CourtName=&Office=&OfficeName=&page=12&surnamesearch=SMITH&forenamesearch=ALLFORENAMES&OPTION=NAME&tradingnamesearch=

DM1985

ACG wrote: »

There are lenders who will consider lending after 3 years discharged on the help to buy scheme. That being said, if it is the Mortgage guarantee you are looking at (95% mortgage) rather than the equity loan version, I think the chances of being accepted are slim at best.

Typically I would say anything less than 6 years discharged you are probably going ot need a 25% deposit. There are exceptions and I suppose in the grand scheme of things you have little to lose by giving it a try but I would go in expecting the worst and then anything else is a bonus.

A declined application at this stage, whilst not ideal will have dropped off your credit report by the time you have been discharged for 6 years anyway.

Why do you say 6 years since discharge?

I was under the impression it was 6 years from the date of bankruptcy

PeteRogers

Hi

I was going to ask a similar question and came across this thread.

I have asked a couple of brokers and they have said the same thing. Does not look like I would be consider on HTB scheme until 6 years AFTER DISCHARGE.

My bankruptcy is off record in Dec 2016 but will have to wait til Dec 2017 for HTB.

Apparently Nationwide would consider an 85% LTV as it stands now so will need to save a little more.....

Oh and I am an IT Contractor so that adds a little more spanner in the works!