Mortgage Questions

Mrh1019

Hi all, I was hoping someone could give me some advice. We are now almost seven years post bankruptcy but I’m a little stressed about our chances of getting a mortgage.  I have just completed a Masters and halfway through the course my funding was pulled. As I had good credit at this point I got an interest free credit card to pay my fees on in order to complete the course. I paid the minimum payments whilst at uni but since I started working I’ve managed to clear all but £1500.  Will this be frowned upon though as I’ve had debt again since the bankruptcy? I really didn’t want to drop out and I feel I did the right thing as I’m now qualified and have substantially increased my salary. Does anyone know if this is likely to be an issue with mortgage providers? I see a lot of posts saying keep your credit file ‘squeaky clean’ in order to get a mortgage. Does this mean don’t get credit or pay it on time?

thank you
xx

mwarby

Some mortgage providers will never take an ex bankrupt, for many others it’s up to 6 years post discharge.

having £1500 of debt isn’t at all unusual. You’d be credit scored as anyone else would, but I doubt it’s a big issue.

I expect for you it will come down more to affordability, LTV and general willingness to lend (which is lower now than previously due to corona virus)

To me squeaky clean credit is no missed payments, not having a lot of minimum repayments is a bonus.

 The more recent and worst (eg missed or default) behaviour will have biggest impact, just minimum repayments years ago isn’t going to be a big issue, still only making minimum repayments now would be an issue

Mrh1019

Thank you for replying, this info is really useful x 

RAS

Congratulations on getting your Master's degree, and on paying down the fees so quickly. The fact that you could get a 0% card says a lot about your credit worthiness. 

The real issue is lender willingness in the current situation, re Covid and Brexit. So be prepared for them to want to see you in your enhanced role a bit longer and to put away a bigger deposit.

Mrh1019

Thank You! I’ve appointed a mortgage broker who has spoken with Halifax and they are happy to consider me early on in my new post which is good news. We will have a 15-20% deposit from the sale of our property do you think this will be enough? Xx