Getting a mortgage once bankrupt

simplesibbo

Hi all

I'm new here and wish I'd known about this when I went bankrupt (27.10.06) as I think it would have been a great help. The support you guys give each other is fantastic...

I was wondering how easy, or rather how difficult, it is to get a mortgage once discharged from bankruptcy. I'm due to be discharged, hopefully, in October and want to get a joint mortgage with my fiancee (she has a great credit history). Any advice would be greatly appreciated - particularly which lenders, if any, might be helpful/sympathetic.

Thanks a lot.

philnicandamy

Hiya & welcome
its dificult but from what I hear not that impossible......hopefully someone will be along with answers for you soon

Conor_3

A couple of years post discharge, it doesn't seem to be considered. However with the current sub-prime lending crisis in the US, it doesn't mean that this may remain the case.

simplesibbo

Yeah, that's exactly what I was worried about Conor - if it was difficult before, it'll be a nightmare now as no-one will touch me with a barge pole - and I wouldn't blame them in the current financial climate. Anyway, any advice is still welcome and needed.

mikeyboy

Hi there,

Once you are discharged you are legally allowed to get a mortgage, the issue is finding a lender who is prepared to lend.

You are legally obliged to inform the lender of your previous bancruptcy.

There are (currently anyway) several lenders who will consider applicants with previous history of b/r, obviously the rate charged will be higher than what a "Prime" client would get.

I would think you will find a lender, the problem is how much it will cost. Speak to a local mortgage broker and be totally honest with him/her from the outset. A broker will know the criteria of many lenders and should be able to help you.


All the best
Mikeyboy

simplesibbo

Thanks Mikeyboy, I kinda knew this - we'll have to pay a higher rate of interest initially; but who are the lenders who might deal with the likes of me? Would it help if a (financially secure) relative guaranteed the mortgage?
thanks

fiveyearplan

You need to go to a good mortgage broker. I know of one if you are in need just pm me and I'll give you contact details.

Broken_hearted

Do your research before getting a mortgage and stay away from the sub prime market the rates are insaine. I would wait a few years till you have a decent deposit.

Posthinking

I got one, 15% deposit minimum and a rate at 3/4% over the standard but when my credit rating is improved after a couple of years I can switch to the mainstream lenders. Speak to a whole of market mortgage broker

Treadstone009

How long since discharge postthinking:beer:

psycrow57

I would have thought your best bet would be speaking to a financial advisor - I know they have access to different deals from lenders, and are more likely to be able to arrange something for you than if you try yourself!