Mortgage with bankruptcy on file

starlord087

I am eager to buy my first home and will have at least 10% deposit available next month. Thing is I have a bankruptcy on my file and it won't drop off until June 2017. I am wondering if it will make much difference to my application chances if I apply for a mortgage next month or wait until the bankruptcy comes off my file in June?

kingstreet

It won't drop off...?

Lenders have different approaches to insolvency issues and many won't be interested at 90% loan to value.

However, the ones that might will want to know;-

what is the date your bankruptcy was actually registered?

what was the date of discharge?

Such dates will be of great interest to an independent mortgage broker.

luvchocolate

pop over to the B.R board plenty of people got mortgages 3 years post discharge or thereabouts.

theartfullodger

starlord087 wrote: »

Interesting thought- Googled it but it doesn't seem possible. Thanks for your input anyway.

Not at all, thanks for the feedback.

What would prevent you simply sending a cheque for the appropriate amount to each person who you left short previously, please? (If no bank account there will be other ways).

Cheers!

starlord087

theartfullodger wrote: »

Not at all, thanks for the feedback.

What would prevent you simply sending a cheque for the appropriate amount to each person who you left short previously, please? (If no bank account there will be other ways).

Cheers!

I didn't owe people money- it was a bank and they made a lot of profit despite having to write some debt off. I don't feel I owe them anything more today.

All in the past now so just looking ahead to getting a mortgage. Thanks!

downhillfast

starlord087 wrote: »

I am eager to buy my first home and will have at least 10% deposit available next month. Thing is I have a bankruptcy on my file and it won't drop off until June 2017. I am wondering if it will make much difference to my application chances if I apply for a mortgage next month or wait until the bankruptcy comes off my file in June?

I'm currently awaiting a mortgage decision (9 years post discharge) from my experience with other financial products I found that once it dropped off my file things got a lot better - for the sake of 6 months I'd be tempted to wait a bit longer so that you don't have a 'computer says no' straight decline. If you can at least get past a credit check then lenders will then be using human judgment for your case. Definitely use a good broker as they will know which lenders will suit your situation better to give you the best chance. Good luck.

kingstreet

The bankruptcy falling off your credit file does not leave lenders unable to see it. Your solicitor will be required to carry out a search close to exchange of contracts and if it is uncovered and you have chosen a lender which would have declined you on lending policy had you disclosed it, your mortgage offer will be withdrawn.

There are lenders who will not ask about an insolvency where it was registered more than six years ago and others who ask about time since discharge. Experienced brokers know which lenders to approach and which to avoid.

Hence my point about such dates and an independent broker.

theartfullodger

starlord087 wrote: »

I didn't owe people money- it was a bank and they made a lot of profit ..................

What about the many small shareholders & those who's pension funds have invested in this bank: Are they not "people"?

Happy New Year everyone!

starlord087

theartfullodger wrote: »

What about the many small shareholders & those who's pension funds have invested in this bank: Are they not "people"?

Happy New Year everyone!

They are but I borrowed from a bank- not people.

starlord087

downhillfast wrote: »

I'm currently awaiting a mortgage decision (9 years post discharge) from my experience with other financial products I found that once it dropped off my file things got a lot better - for the sake of 6 months I'd be tempted to wait a bit longer so that you don't have a 'computer says no' straight decline. If you can at least get past a credit check then lenders will then be using human judgment for your case. Definitely use a good broker as they will know which lenders will suit your situation better to give you the best chance. Good luck.

Yes I think you are right. I'm just getting too excited the closer I get to the reality of having my own place 😀

luvchocolate

go to the B.R forum..people will not judge you there, these remarks come from ignorance and no knowledge of the B.R process, ignore such remarks