Follow this topic Q&A » Mortgages

Could we get a first time buyers mortgage after a bankruptcy??

by malicat 26 February 2010 |

2 comments | Love

Love 0 loves

I had to declare myself bankrupt due to being off sick from work for nearly 3 yrs. I was released from the bankruptcy in August and have also been working full time since August. My partner has had debt problems but is also now working full time and we are currently looking for a property to rent together as our seperate rental properties aren't suitable for us to move in together - the rental market in our area is very slow! We are wondering if it would be feasible to get on to the housing ladder ( both 1st time buyers) to solve our housing needs....

Report

Enjoyed this? Show it some love

Retweet

Comments (2)

Facebook

Twitter

General

Comments (2)

804

MikeGG1 posted
You are going to need a deposit of 10% at least plus legal fees and other expenses.
Once you have a track record behind you plus that deposit, you should be able to get a mortgage.
Meanwhile you will have to rent, but even there you might fail a credit check at the moment.
Mike
Posted on 26 February 2010 | Love 0 loves Report
272

Swarbs posted
You should get hold of a copy of both of your credit reports and see what your current status is. wwww.experian.co.uk is the usual one, but www.callcreditcheck.com, run by another credit reference agency, will also give you an estimated credit score each month. This score won't exactly match with the score each lender gives you, but it will give you a rough estimate of how good of a risk you are seen as at the moment.
If you think you will be able to get a mortgage, the best thing to do is contact a broker, such as the lovemoney mortgage team. They will be able to advise you which lender is best to apply to, so you don't run up too many failed credit checks when applying. They will also help to get you the best deal in general.
To be honest, I would prepare yourself to be disappointed if applying to buy. The bank don't currently have enough funds to fill all the demand for mortgages, which is why mortgage rates are currently so high compared to LIBOR and the base rate. As a result, they are looking for any excuse to turn people down, so it doesn't become absolutely obvious that they are rationing mortgages, and being a recently discharged bankrupt is likely to be top of their list.
Re: the renting, I don't think being a recently discharged bankrupt will necessarily cause your to fail their credit checks, but some agencies might require you to put down more than one month's deposit, to give them extra security.
Posted on 27 February 2010 | Love 0 loves Report

Post an answer

Something you're dying to ask... or answer?

Get started now

Sign in for a better Q&A

Registered already? Great! You can just sign in to ask and answer questions.

W3C Thank you for using Three Kings