5% mortgage after bankruptcy

Newbuyer88

I was just wondering if anyone has had any luck with the new 5% mortgage deals. 

My husband and myself both voluntarily filed for bankruptcy in 2014 due to a failed pub (lots of problems with the maintenance of the  place and false promises from the previous owner and brewery) 

The bankruptcy is now cleared from our credit history on three of the major credit sites (Experian, equifax and creditkarma) 
my husband’s rating is excellent across all three (I know lenders don’t really look at the score but it has given us a better idea of where we are) he has not defaulted on any payments since and his CC is paid off in full every month.
Mine is fair to good at the moment because all of the DD and rent goes out of his account (he has a much higher earning job than myself) I do have a credit history, it’s just a bit thin. My credit card limit is £600 a month and I am currently at about 60-70% usage (I can get this down to under 25% no problem)
I also don’t have any loans or missed payments in my history. 

We are aiming for a property that will be the same monthly payments as our current private rent each month and we have the deposit and funds for all fees for moving.

I know we will need to declare the bankruptcy from our past when we approach a lender but has anyone had any success on securing a 95% mortgage after 6.5 years from bankruptcy?

thanks for any advice

NewLeaf1986

Speak to an all of market broker like London and Country (or another broker, research the market yourself to find who you might be comfortable with).

They'll match you with a suitable lender for your circumstances. 

With everything else in order it shouldn't be beyond the realm of possibility to obtain a 95% mortgage if you are both employed on a peranent basis with annual salaries comfortably funding the requested amount of borrowing, and no real debt to speak of between you both.

Personally however I'd emphatically urge against buying a house without more in the bank. You're going to want a comfortable buffer for all the things you want to do with the house, and all the things that come as a suprise, and if you're looking to buy as soon as you have just 5% down it's unlikely you'll also have that comfortable buffer underneath you.

Interest rates and approval rates improve at each major LTV point, e.g. 90%, 85%, etc.

Personally my OH and I aren't going to be lookig at purchasing a house until we have 15% down and at least two months joint income underneath us as an additonal buffer. 

Newbuyer88

I was only asking as a house that ticked pretty much all of our boxes came up and we were just having a look if we were in the position. However (I guess thankfully for us it sold before we got a chance to go to our viewing) so we have decided to save for the next 12 months so we can up our deposit to 10% at least. 

NewLeaf1986

Newbuyer88 said:

I was only asking as a house that ticked pretty much all of our boxes came up and we were just having a look if we were in the position. However (I guess thankfully for us it sold before we got a chance to go to our viewing) so we have decided to save for the next 12 months so we can up our deposit to 10% at least. 

You're going to be so grateful to yourselves that you waited, you'll find the application process less stringent and interest rates much better.

OH and I would love to go out when we have 5% in the bank too but we know full well that future us will be much more grateful if we just hang on a few years to ensure we are in a stronger position.

We'll still be able to pay off whatever we borrow by the time we turn 60 and judging from your username (I'm guessing you were born in 1988?) I'm sure you will too

K_S

Newbuyer88 said:

I know we will need to declare the bankruptcy from our past when we approach a lender but has anyone had any success on securing a 95% mortgage after 6.5 years from bankruptcy?

thanks for any advice

@newbuyer88 Once you have been discharged over 6 years, that shouldn't (on its own) stop you from getting a 95% or 90% mortgage. Do consider using a whole of market when it's time to start viewings so you can avoid the lenders who will not consider ex-BRs irrespective of time elapsed. Good luck!