Buying a house after bankruptcy

Redshank

Morning

My husband I went bankrupt in 2013 - the result of a combination of bad luck, personal circumstances, health, etc etc. I need to double check the discharge date but it was less than 12 months later.

We're hoping to buy a house in the next couple of years (after the 6years Post-discharge although I get the impression that it may be possible to buy before that). We'll have a deposit of around 40K, which based on local house prices and what we could theoretically afford would be a deposit of around 25-30%.

*But* We took a mortgage out in 2007 (just before the banking crisis/financial crash, fab timing which ended up included in the bankruptcy (the house was auctioned by the lender as they wouldn't let us sell at the price we could get for it and we voluntarily gave the keys back, which ultimately meant they ended up with less for the house and we ended up liable for a much larger chunk of the mortgage outstanding). Because we've got one failed mortgage behind us will that impact the liklihood of us getting another even more than just a 'general' bankruptcy?

Also, in our situation would we be classed as first time buyers again, or something else?

Thanks for any help

sourcrates

Well after 6 years all trace of the bankruptcy and any of the debts associated with it, will of disappeared from your credit file.


So, as long as you use a different lender, as the one you used last time may keep internal records for longer than 6 years, you should be ok.


Some applications may ask you if you have ever been bankrupt, I think general advice on here is to go through a broker

Redshank

Yes, we're planning on going through a broker. I know everything should be wiped after 6 years, just wasn't sure if there was some sort of sneaky loophole/problem we were unaware of if you wanted a new mortgage after including a previous one in the bankruptcy. I assume we'd be classed as first time buyers in terms of a mortgage because we don't currently have one.

Thank you

Redshank

To add... We went through a financial advisor/broker last time and he actually got done for fraud a few years ago so we've generally not had much luck full stop! :rotfl: (have to laugh or we'd cry )

luvchocolate

Hi you have a good deposit which is good, remember if you are asked if you have ever been B.R you need to answer yes.
Unfortunately you are not a first time buyer as you have had a mortgage and property, therefore its not your first time.
Good luck and please let us know how you get on its always helpful to others.

PixelPound

There are plenty of high street lenders that will lend to ex-bankrupts, though some (like santander) who will never no matter how long ago. As stated, some have the question on the application form, so avoid those that do.

Go through a few brokers and get their views before deciding. The size of your deposit will help you and you may want to get a copy of your discharge notice if you don't have one, in case it is needed.

ACG

Decent deposit, quite historic - you should have decent enough options.
But you may find lenders ask if you have ever had a property repossessed, so it could come up even if it has dropped off your credit report.

As has been suggested and you seem to be doing anyway, speak to a broker. They can take a look over everything and go from there.