Bankrupt in 2009..Mortgage Offer

A4445

I used to post quite often in this forum but not so much these days as my issues have all since passed.

I just wanted to post that there is hope of a Mortgage in the future. I didn’t expect to be accepted but I had a mortgage offer today. Just wanted to let people know that it’s been possible!

scp941

It is indeed possible.

I was bankrupt in 2010 and luckily was renting on a long term lease at the time having lost my house in a divorce settlement 6 years earlier.

To cut a long story short, 2016 my landlord decides to sell portfolio and gives me to end of year to move. Can't find anything under £950 pcm to rent and by chance stumble across a new housing development which developer also operated the government FTB equity loan scheme. OK not really ideal but I only had £13,000 available for a deposit so paid the £500 reservation fee on a 3 bed semi.

The developer recommended a FA who was brilliant and came back to me with several offers a few days after I filled out all the forms but only over 18 years because of my age and also negotiated the equity loan down from 25 years to 18 years but I needed to find an extra £5000 deposit because they wouldn't do the full 20% under the scheme.

So the mortgage offer I took was a 2 year fixed rate @ 3.14% with Nationwide which wasn't too bad considering but I was paying less than I would have been if I was still renting. Last November, with credit rating much improved, the same FA got me a 3 year fixed rate @ 1.79% with the same. I was tempted by a 5 year fixed rate @ 1.99% but I wouldn't be able to make over-payments in the first two years on that one.

foeism

I'm also the same position after my bankruptcy in 2010.
Totally agree with both. It is possible!

maxmycardagain

Like a Phoenix rising from the ashes

iquit

I remember during my BR days these kinds of threads gave me hope. So I'll add my positive post BR experience and say, yes it is absolutely possible.

paul1672

Nice to see some positive results after bankruptcy.
I’m currently in the recently discharged pen and was wondering how soon after discharge is getting a mortgage offer possible?
I’m currently 14 months into an IPA repayment plan and by time it’s finished I will be nearly 49 but was hoping I might still be able to get a mortgage. Obviously hoping to save a bit for a deposit too but will need to wait until I’ve finished paying my IPA First 😔
Any advice would be massively appreciated. Guess I’m looking for some kind of hope

Regards

Paul

foeism

paul1672 wrote: »

Nice to see some positive results after bankruptcy.
I’m currently in the recently discharged pen and was wondering how soon after discharge is getting a mortgage offer possible?
I’m currently 14 months into an IPA repayment plan and by time it’s finished I will be nearly 49 but was hoping I might still be able to get a mortgage. Obviously hoping to save a bit for a deposit too but will need to wait until I’ve finished paying my IPA First 😔
Any advice would be massively appreciated. Guess I’m looking for some kind of hope

Regards

Paul

Hi Paul. I applied for a mortgage the following month of my discharge, once I checked my credit score was updated. I'm 45 so I went to see a mortgage advisor, who came up with a few high street names. Currently with Halifax. The only thing to bear in mind is the term of the mortgage. As I'm 45 they calculated the term up until retirement age, so my term is 24 years.

scp941

foeism wrote: »

Hi Paul. I applied for a mortgage the following month of my discharge, once I checked my credit score was updated. I'm 45 so I went to see a mortgage advisor, who came up with a few high street names. Currently with Halifax. The only thing to bear in mind is the term of the mortgage. As I'm 45 they calculated the term up until retirement age, so my term is 24 years.

My mortgage runs until I'm 75 although I intend to pay it off well before then although, of course, it's covered in case I don't make it that far . I'm fortunate that I work for a company that values it's employees and don't expect you give up work at retirement age. I'd probably get bored if I gave up work completely. So when I reach 66, I'll cut my hours because NI will be thing of the past plus my total pension is worth around the £25k pa.

paul1672

Well it’s good to know I’m not a complete lost cause although I am stuck with an IPA until January 2021 so I guess I won’t be looking for a mortgage until at least 2022 😔.
Managed to hopefully sort my credit file cleaned up this week so good to be ready well in advance 👍

Regards

Paul

A4445

Just thought I’d update, Mortgage has completed without any issues. So now I’m a home owner. Bankruptcy seems to have nil effect now. I’m glad I learnt my lesson, a hard lesson never to be repeated.

Jimbo4x4

To add- I was bankrupt in March 2009

Had a mortgage approved in Jul 2017 on a 90%LTV at 2.29%

Just remortgaged on a 83% LTV at 2.09%

I used a whole of market broker to find the mortgage and ensured that my credit file was utterly utterly spotless, but with really good credit useage.

The only lasting effect is that some insurance companies don't want my business.

In hindsight i probably could have got away with not going bankrupt, but it was a very good way of getting life back on track and drawing a line under the effects of the 2007 financial crisis.