Unable to get a mortgage - bankruptcy 17 August 2020 at 9:23PM in Bankruptcy & living with it 5 replies 791 views

kayleigh321

Hi, my situation is as follows. My husband went bankrupt in June 2016, and we were told in January of this year by London & Country we needed to wait until he had been discharged for 3 years before applying for a mortgage. I currently own my house (hubby doesn’t) but we are wanting to move to a bigger house. Then covid happened and we have since been told by another broker in July that none of the lenders will accept us now due to the pandemic until he has been discharged for 6 years. There was only one lender who would consider us but they were asking for a 25% deposit and had over a 7% interest rate! Just wondered if anyone had had any luck with securing a mortgage in a similar situation to ours? 

MovingForwards

Better off asking on the mortgage board as that's where the resident brokers hang out.

MinuteNoodles

Large deposits are now becoming the new normal, the days of 5% deposits are long gone even for those with a squeaky clean history.

bradders1983

You arent going to get a decent rate and/or a small deposit mortgage with a bankrupcy on your record. Wait another 3 years. 

kangoora

Is there a potential for extending your current house rather than moving to a bigger one? I assume it would be easier to get funding for an extension from your current provider rather than getting a new mortgage?

bradders1983

The current lender would still run a check and that's when the application would likely end