Ex-Bankrupt mortgage application

brokeinbristol

Hi, I'm after some advice. Both my wife and I were declared bankrupt in January 2010 and discharged on 19th October 2010. We are now looking to move from our property, which we were able to keep after buying back the beneficial interest at the time of the bankruptcy. We have approximately £100k in equity and a joint income of approximately £77,000 p.a. We are looking at purchasing a property with a budget of £350k Max subject to approval by a bank. Do you think that we would be able to borrow £250k based on our history? Do we have to wait until the 19th October this year before approaching a bank to ask for a mortgage? (We have never defaulted on our current mortgage). We have seen a house that we love the look of for £290k but are scared of going to a bank to ask for money as we don't want any black marks on our credit history. As a note our credit scores are very good, we now have a 'normal' bank account each, and a joint account and credit cards / savings which are managed accordingly. I'd be grateful for any advice.

minimike2

Assume there is no other debt left remaining now?

Once you have been 6 years clear there are plenty of normal high street options for you. Some are fine with a shorter time, but you will have more options once the 6 years is up.

Usual affordability assessments will apply but your bankruptcy shouldn't be causing you much bother past the extra paperwork of having to provide your discharge certificate.

ACG

Speak to a broker, there are a handful of lenders who will do this prior to the full 6 years discharged. Normal rates "should" be achievable.

brokeinbristol

So I would be correct in assuming It's 6 years post discharge date and not 6 years post bankruptcy declaration.

kingstreet

At least two lenders use six years from registration and not from discharge.

ACG

Most lenders want a full 6 years discharged. There are some as Kingstreet says which is 6 years from registration, which usually means 5 years discharged, but then there are also some lenders who say 3 years discharged.

So you should have some options, maybe a handful of lenders which have decent rates.