Mortgage 2 years since discharge? (3 years since BR)

Jono987

Hi everyone, I was made BR on 31st December 2016.
Me and my partner are now looking at buying a house and are going through a mortgage broker who thinks he may have a lender who will consider us with a 20% deposit.
Just wondered if anyone else had been successful with a mortgage application only 2 years after being discharged?

Thanks!

mcmorj

Hi there, I would imagine there are no hard and fast rules - if someone is willing to lend on a secured asset (all houses with a mortgage are typically the Bank's property and you are permitted to live in it until fully paid off) then a discharge date should not be a hindrance. I would expect a 20% deposit is basically removing any risk from any lender. Just be totally up front and honest - as long as both parties know exactly where they stand then all should be well.

kuratowski

OP, I suggest posting this again on the mortgages & endowments board, because there are some mortgage brokers who regularly post there and they will know the lenders who might/might not be willing to consider it.

mcmorj, this comment "all houses with a mortgage are typically the Bank's property and you are permitted to live in it until fully paid off" is simply wrong. When you buy a house with a mortgage you are the legal owner of the property, 100% of the risks of ownership are yours. The bank has advanced you a loan secured on the property, and if needs be they can take legal action to force you to sell the property, but the bank can never own it.

Jono987

Thanks to you both! I was half expecting some nasty replies saying I don't deserve a mortgage for the next 20 years due to being bankrupt haha..
The broker seems quite confident but everything I read seems to suggest 3 years discharged is when some lenders will consider it.

kuratowski

I was actually thinking quite the opposite - how amazing that 2 years after discharge your situation has improved so much you are already looking at buying with a 20% deposit. Well done :beer:

Jono987

kuratowski wrote: »

I was actually thinking quite the opposite - how amazing that 2 years after discharge your situation has improved so much you are already looking at buying with a 20% deposit. Well done :beer:

Thanks a lot! The main reason behind it is my partner, we were together two months when I went bankrupt! Over 3 years later and she's really helped change my life and outlook on money around. Ended up changing jobs and getting promoted and have not gambled in around 1100 days

[Deleted User]

I'm assuming this is a 'normal' property you're looking at (i.e. not Help To Buy/Shared Ownership or similar)?

If so, there's certainly a lender (and they aren't as pricey as I thought they would be!) - then it just comes down to Underwriting - for example good bank statement conduct, no bounced direct debits etc.

The strong second applicant should help your case massively.

HTB is a possibility but is very pricey

Pretty sure Shared Ownership won't be possible for at least 1 more year (3 years discharged).

Best of luck with it all - I'm going through it currently (4 & 1/2 years discharged, mine drops off shortly)

LL198585

Hi,

I say well done and hope your successful.

I’m in same position I came out of a Scottish trust deed July 18 and in process of buying a house. We are needing a 30% deposit. Just lucky houses in Scotland are fairly cheap

Jono987

Somerset_La_La_La wrote: »

I'm assuming this is a 'normal' property you're looking at (i.e. not Help To Buy/Shared Ownership or similar)?

If so, there's certainly a lender (and they aren't as pricey as I thought they would be!) - then it just comes down to Underwriting - for example good bank statement conduct, no bounced direct debits etc.

The strong second applicant should help your case massively.

HTB is a possibility but is very pricey

Pretty sure Shared Ownership won't be possible for at least 1 more year (3 years discharged).

Best of luck with it all - I'm going through it currently (4 & 1/2 years discharged, mine drops off shortly)

Thanks a lot and best of luck to you also.
Just a standard property, we are both first time buyers and both have LISAs. The property is £140k and we will be putting £28k down. The interest is I believe around 4.5%. A lot higher than for most people but also a hell of a lot lower than I was expecting (was expecting around 6%).

The broker we are using charges around £500 but the work he has put in and will have to put in to get me the mortgage in the first place is massive. If he manages it for us I'll be more than happy to pay the £500.

Then we just have solicitors and things to pay for. Never bought a house so it's all a bit confusing but luckily my family have all gone through it multiple times so we are well advised.

Jono987

LL198585 wrote: »

Hi,

I say well done and hope your successful.

I’m in same position I came out of a Scottish trust deed July 18 and in process of buying a house. We are needing a 30% deposit. Just lucky houses in Scotland are fairly cheap

Thank you very much. Best of luck to you, prices where I am are quite cheap as well for what you get. For our £140k budget we should get a 3 bed semi in a nice area with a double garage and drive for at least 2 cars.

LL198585

Very similar. We need a 39 grand deposit and 4.5% 2 year fix and the broker fees will be about 500 as well which I’ll happily pay. Fingers crossed it goes well for both of us. I should know Monday night if the mortgage is a go-er