Improving my chances in the future ?

P-B-73

April this year i was made a 'discharged bankrupt'. Applying for a credit card and making regular payments seems to be one way to help start rebuilding my credit status. As someone looking for a 1st time mortgage i was wondering if opening a savings account(to save for a deposit) will also help the rebuilding process? i've been advised that renting would be the best bet for at least 3 years due to the high intrest rates(8-9%) i will have to pay and of course being a high risk, also the slowly declining house prices. But does this mean in 3 years time that i will be able to apply for a mortgage with the lower rates or am i better off biting the bullet and paying the higher rates until i can prove that i am a reliable payee? :wall:

Xbigman

When applying for mortgages after being bankrupt all mortgage applications ask the question 'have you ever been bankrupt?' This will permanently harm your chances of getting a mortgage but a few lenders will still do one for you at high street rates of interest.
Your question is how to improve your chances.

1. Be whiter than white for 6 years+.
2. Have a deposit of *at least* 10%, 25% is better.
3. Keep all records of your bankruptcy. If a property was involved get written confirmation from whoever had the mortgage that you no longer have a liability to them. (I had to do this 12 years after bankruptcy, it was a !!!!! but I did it eventually).
Regards



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