90 LTV with 13 year old BR.

Missboo

Ok, for perspective; I have 13 year old BR. It was because my ex husband was violent and I was removed by the police for my own protection. Long story short, my ex ran up loads of debts in my name and I went BR. I was discharged early because it was no fault of mine (before it was a compulsory 12 months). 

My 2nd husband and I have been saving, we will have roughly a 40k deposit come May. He is leaving his job for a better paid version (his skills are in demand, even in a pandemic). He will be earning (as of next week) 75k basic, 11% bonus a year. I earn 11k as I’m studying for another year whilst working and we have 4 dependents. What are our chances of a 350-400k  With a house at 90% ltv. Many we are looking at are 350-375k. I am scared my bankruptcy will mess it up.

For clarity, we both have top Experian scores. We both have good and long standing credit accounts. I have a few hundred on credit, which I’ll clear, it’s more to show I can make regular payments. I have bought xyz on interest free deals to show I can pay (yet have more in savings). In fact I have so many dormant accounts (as I’ve built up my history) I’ve closed a couple, so it doesn’t look like I have a ridiculous amount of available credit. I feel like I’ve made amendments for something which wasn’t really my fault. I’ve done it all by the book and I have closed accounts which I don’t need and which provide a ridiculous amount of available credit. Will my BR ruin our chances of a family home?

ACG

You should probably draw up a list of anyone included in the bankruptcy, probably avoid them. But I would be pretty confident there will be options out there for you at 90%. 

Missboo

That’s good to know. I wasn’t a home owner before so no repossession. I banked with Lloyds at the time but I am now in a long standing account with Barclays. They keep offering us premier. I have said we should pay for a broker (we are building this into our savings goal) along with duty and fees. Do you really think this is possible?

Emmia

Missboo said:

That’s good to know. I wasn’t a home owner before so no repossession. I banked with Lloyds at the time but I am now in a long standing account with Barclays. They keep offering us premier. I have said we should pay for a broker (we are building this into our savings goal) along with duty and fees. Do you really think this is possible?

Have you looked to see what Barclays will offer you, using a mortgage calculator or similar to give you an idea, before you go to a broker?

I've always (personally) gone direct to a lender after looking at rates etc., myself rather than using a broker. 

Missboo

According to the Barclays calculator they will offer us what we want. So will many other places. The sticking point for me is the BR. We are FTB and I don’t know which lenders will accept me and which ones will not. We both work in quite stressful jobs and the whole mortgage application thing is really scaring me right now!

K_S

@missboo With the BR being as old as it is, you should have mainstream options available at 90%. If you want help with avoiding the lenders for whom this may be an issue, I would recommend getting in touch with a broker who can look at the whole picture and give you a realistic idea of your chances. Good luck!

ACG

Missboo said:

That’s good to know. I wasn’t a home owner before so no repossession. I banked with Lloyds at the time but I am now in a long standing account with Barclays. They keep offering us premier. I have said we should pay for a broker (we are building this into our savings goal) along with duty and fees. Do you really think this is possible?

Yea, it should be possible. The bankruptcy will show for 6 years on your credit file, so it has well and truly dropped off by now. 

Some companies keep internal records much longer than 6 years and some companies are linked (as an example RBS and Natwest are the same company) so you could find some companies are ruled out as they had to write off debt and others ruled out as they are linked to those companies. Some lenders will also never lender to anyone who has been bankrupt. 

But in the main, 13 years ago should not be a deal breaker. 

Missboo

Thanks for your help. I’ve done some digging and I will be in touch in the coming months with a broker on this thread. I just wasn’t sure if I’d be completely written off. That’s given us incentive to keep going! For me, I’d rather pay a broker who knows the market (I don’t). If it’s for our family home and I don’t want to end up Completely stressed. I feel it’s worth it! Thanks everyone!