Halifax - Shared Ownership with bankruptcy

[Deleted User]

Bit of a shot in the dark I suppose, and suspect the answer may well be no..... but I've seen many examples of "discharged over 3 years" for any form of mortgage lending.

There are a couple of lenders that appear to accept immediate discharged, subject to high deposit (as expected) but they won't offer Shared Ownership - so my deposit would be < 10% on a full market value, and so far outside criteria.

Halifax offer Shared Ownership and only state:

The Bankruptcy question should be answered as yes if your customer has had a bankruptcy.... within the last 6 years

and then under lending:

Credit scoring
All applications will be credit scored. If we turn down an application, customers have a right to appeal....

So...... chances of outright passing a credit score for a 25% share of a property when I've been discharged for 2 years? (Later this year). Don't really want to wait a further year - although if I do I appreciate I'll be able to get non-S/O and have a bigger deposit etc.

Example house details are:

OMV: £127,500
25% Share @ £31,875
Deposit (approx): £15,000
Income £30,000 - stable employment but only been raised to this level for a few months so far

I know brokers are advised for adverse credit - just want a feeling of whether it would actually be worth a chance by brokers on here.

As their criteria doesn't seem to exclude yrs, like other lenders, that would suggest to me there's some potential, especially where mortgage is small with reasonable deposit?

e.g. FAO973 has 2 year fixed based on 90% LTV - on lending of ~£16k, even massively stressed surely they'd see that's easily affordable??

Edit: Just remembered minimum loan is normally more than that..... which will throw a spanner in the works...but can't see one listed on their site

kingstreet

Was your bankruptcy registered more than six years ago?

If it wasn't, you would answer the question "yes" and be automatically declined by Halifax.

Discharge date is not relevant.

Is this newbuild or resale? Halifax newbuild max LTV is 80%, even on SO.

Zeni

Hi Somerset - I cant help on the Bankruptcy front but recently I've been through the ringer of trying to find out about a mortgage for shared ownership and found none of the highstreet banks i tried (Halifax, HSBC, Lloyds, Santander) offered a shared ownership mortgage for less than a 10% deposit (we were going to use 5%) most were 10-15% and even higher if it was a new build property.
(We didn't go through in the end as decided to wait and save but we did have a broker who found a good deal with Leeds Building Society for a 5% mortgage so it may be worth using a broker).

[Deleted User]

Thanks both - didn't realise the 'Bankrupt in last 6 years' was a straight decline as it doesn't directly say it on the intermediary site - but looking at the public facing site, it does say you can't get an AIP if you were bankrupt in the last 6 years.

I got one anyway just to see what would happen (as I've just seen it's only a soft search), and was declined - either due to bankruptcy, or LTV etc - so it's a complete non starter anyway.

Looks like October next year will be my magic date afterall!!