Can I access a mortgage and Governement help to buy with bankrupt husband?

Elliephantus

My husband was declared bankrupt in October 2018, due to a failed business. He is now a full time student studying for a degree, to find a new career, his only income is student finance.

I have just finished a degree and have the possibility of being promoted in my part time work, meaning my income would be 23K per year. I have finance/loan debts of 4.5k, student finance debt and one child aged 16. My new role would start in September as a specialist autism practitioner in education.

Neither my husband or I have owned a property before. We are currently paying £785 a month in rent and I would like to reduce this outgoing and feel secure in owning my own property. I would love to be able to have a pet for my daughter who has autism, not allowed in our rented property! I am interested in shared ownership, properties in this area, at 40% shared ownership are around 65k. I have £3000 in savings for a deposit. I have been looking at the possibility of a government equity loan.

Long story short, once I begin my new role, can I get a mortgage and equity loan for shared ownership in my name only, based on my income? Will my husbands bankruptcy be an issue?

[Deleted User]

I have definitely done a mortgage for a married couple on new build help to buy with the wife being left off due to an IVA she was currently in. So that should be fine. As far as i am aware though they do not offer any facility to add names on to this scheme at a later date though

Cant speak for shared ownership sorry

[Deleted User]

Shared Ownership are a bit of pain with determining what they accept until you actually apply. All the adverts I've seen say "good credit history". When I've probed further, I got an email saying essentially good enough to get a mortgage. And so they want to see a AIP/DIP to proceed.

I've got adverse but intend to apply soon, as I can get a mortgage so should be OK. It doesn't seem there is any definitive checklist as to yes/no and it seems provider discretion.

Beware that some Shared Ownership providers won't accept "sub-prime" lenders (Aldwyck are one) who would potentially lend to both of you (once Mr is discharged) but it would be at sky high rates.

Some providers will want you to send your mortgage offer to them to "review" once you get one, but if you're with an established lender that shouldn't really be an issue.

I think it'll certainly be possible for you - if you leave your husband off completely. But you'd need to find a lender that are happy to process a married application in sole names. Some lenders will, some won't.

With S/O, your panel of lenders is already restricted so sole-married is restricting it further.

A number of the building societies do S/O so may be more willing to help if your credit is perfect and you could afford the full amount on your own (also taking all of the S/O rent into consideration).

ShareToBuy lists loads of properties and has a broker service (although they aren't fee free), might be worth speaking to them. Not sure if L&C/Trussle etc would do a S/O mortgage app. I'd definitely try a broker though.

Be wary of "bad credit" brokers. Some are excellent, but some want to charge sky high fees - extra work is involved for sure, but I think some prey on desperation.