Mortgage 8 years after discharge

Chickenman1108

Hi everyone,
Just wondered what peoples' experiences are of getting a mortgage a few years after being discharged from BR?
I am hoping to get a mortgage this year. I was discharged 8 years ago. I foolishly thought that as it no longer shows on my credit file it wouldnt be picked up. But I've just had a conveyancing quote and it shows a fee for a "Bankruptcy Search". From what I can gather online, they will easily be able to see that I was BR even though it was many years ago.
For what it's worth I have an absolutely perfect credit score now (999 on Experian). It will be a joint application with my partner (who also has a good credit score) and we easily fulfil the rest of the criteria.
We will be using the H2B Equity Loan so will only have a 5% deposit (not sure if that would affect anything).
We were hoping to use Nationwide for our mortgage - does anyone know if Nationwide or any other high street banks offer mortgages to ex-bankrupts?

Any help you can give would be much appreciated. I'm panicking now :-(

National_Debtline

Hi Chickenman1108

Bankruptcy will only remain on your credit file for 6 years, which means it will no longer be showing for you. You should also be removed from the public Insolvency Register a few months after discharge, unless you are subject to a bankruptcy restriction order. Assuming you are not, you should no longer be on the register.

Bear in mind though, most lenders ask the question ‘have you ever been bankrupt?’, and you will have to answer this honestly. It could be a good idea to speak to a mortgage broker who will have a good insight in to which lenders are most likely to accept you. You may also find others on the board who can speak from their own experience. Good luck with it all.

Susie
@natdebtline

Chickenman1108

Hi Susie,
Thanks for this info. That's put my mind at ease somewhat.
One thing though, why do I then have to pay the bankruptcy search fee? The banks will have already conducted a credit check (which would show up if I'd been bankrupt in the last 6 years), so if my BR doesnt show up anywhere else anyway, wouldnt the credit check suffice?

debt_doctor

Hi,
It will show up on the London Gazette, bankruptcies are on there for ever. However, once 6 years has passed and with at least a good score on Experian (I note yours is excellent) then there is every chance you can pick up a mainstream lender at a good rate - 2% ish.
The larger the deposit the happier the lender will be.
Just be honest with the lender, I got a great deal from the Halifax after 8 years, they were not in all honesty interested in a previous bankruptcy - just said that was a long time ago. Was essential to have at least 'good' on Experian though.


Good luck
DD

TheGardener

Echoing DD - any lender checking for BR will not look at the Is register - they will look in the London Gazette archive and all BR's are there - whether is was 6yrs ago - or in theory 60 yrs ago.

MissVintage

Hi,
I have just exchanged contracts on a house (3 years after discharge). The £2 bankruptcy search is what the conveyancer carries out after exchange of contracts to make sure that a person is not made bankrupt between exchange and completion.

The search (if you have a bankruptcy listed) comes back as a K18 search from the Land Registry (this is nothing to do with property). A bankruptcy stays on there for 5 years, not 6. This document does not show discharge but after 5 years from the date of bankruptcy drops off there. It is an outdated thing apparently and mainly only used for this type of purpose.

Hope this helps.

chev_chelios

MissVintage wrote: »

Hi,
I have just exchanged contracts on a house (3 years after discharge).

May I ask who your lender is and roughly what mortgage amount did you get?

The_Real_Cheddar_Bob

mine is accord mortgages. £140,000 house. £23k deposit. 5 years post bankruptcy. Just coming to the 18 month point of having a mortgage now.

get a broker, it will be worth it,

ukamber1

Chickenman1108 wrote: »

Hi everyone,
Just wondered what peoples' experiences are of getting a mortgage a few years after being discharged from BR?
I am hoping to get a mortgage this year. I was discharged 8 years ago. I foolishly thought that as it no longer shows on my credit file it wouldnt be picked up. But I've just had a conveyancing quote and it shows a fee for a "Bankruptcy Search". From what I can gather online, they will easily be able to see that I was BR even though it was many years ago.
For what it's worth I have an absolutely perfect credit score now (999 on Experian). It will be a joint application with my partner (who also has a good credit score) and we easily fulfil the rest of the criteria.
We will be using the H2B Equity Loan so will only have a 5% deposit (not sure if that would affect anything).
We were hoping to use Nationwide for our mortgage - does anyone know if Nationwide or any other high street banks offer mortgages to ex-bankrupts?

Any help you can give would be much appreciated. I'm panicking now :-(

Hi, Just completed on a house, almost 7 years since bankruptcy, also had other past complications, which can be an added issue in finding a lender but had no problems at all. Got a mortgage offer(subject to the valuation) within 3 days and was able to get a great rate with a high street bank. ....Important to be open and honest when asked questions but I really wouldnt worry. Solicitor did the normal bankruptcy search as part of the process but after the original mortgage application stage the bankruptcy didnt even come up. I also think a good broker is worth their weight in gold and mine was excellent from start to finish.

Best wishes with your house hunting!;)

MissVintage

chev_chelios wrote: »

May I ask who your lender is and roughly what mortgage amount did you get?

I will post more about this in a couple of weeks after I have completed. I don't want to jinx this or say anymore at the moment as I have had to jump through hoops to get here.