Anyone have positive mortgage bankruptcy stories?

Penguin6666

Hi,

Just wondering if anyone here as managed to secure a mortgage 2 years discharged from bankruptcy, and what deposit/rates were required?

Thanks

ACG

Were you bankrupt for 1 year?

If so, worst case scenario would be 20% deposit and 6.5%.
I would probably leave it until 3 years discharged as there will be more potential options at that point with better rates.

Penguin6666

Hi, yes bankrupt in May 2017. I have been offered rates about 5-6% but wanted to see if it was worth looking around to better that, as I would clearly remortgage after the 2 years was up and would have only paid a couple grand off in capital at that point so was thinking I should just wait!

ACG

I could be wrong, but I think the rates of 5% are a touch low - some lenders charge a "surcharge" of 1% if you have been bankrupt which might not be clear unless you are experienced in the adverse part of the market... Although I am happy to be proven wrong.

I can see both sides, 6% is high, so I can see why people would not want to pay it. On the flip side, if you are paying a lot in rent then it is probably no worse than that. I am not sure what I would do in that position.

Penguin6666

I live with family so even more sense to wait I guess. What rates do you think I might be looking at 3 years discharged from bankruptcy?

ACG

There would be a couple of lenders where the bankruptcy will fit criteria (but that does not mean it will be accepted) with rates from around 2% with a 15% deposit. But you could find those lenders do not accept you and your only option is circa 6%.

It really depends on who was included in the bankruptcy, the LTV, where the deposit is coming from, how your credit report looks (25 defaults registered 4 years prior for example is unlikely to pass a credit check) and basically the case as a whole.