mortgage after bankrupcy......

ollie · Joined: 05 Dec 2006 Posts: 2

HELLLLLLOOOO!

I have been out of bankruptcy for nearly a year and I want to buy my first house

Just seeing if you have any info about getting a mortgage after bankruptcy?

How long does the fact i have been bankrupt stay on my records?
What kind of deposit and interest rates will i getif i apply for a mortgage?

Are there any particular mortgage lenders that specialise in these kind of circumstances??

thanks for any help you can give me at all.

ollie

Andrew · Posted: Mon Dec 11, 2006 5:37 pm Post subject:

You will have a big black mark on your credit file for six years after you first become bankrupt.

Surprisingly, perhaps, it's not only possible for you to get a mortgage, but it's likely to be the easiest form of credit for you to get. That's because it's secured on bricks and mortar - and the lender will be able to get their hands on your house if you stop paying.

Nevertheless, it's no doddle: You will pay through the nose - it's likley to be a few years before you get the best rates. You may also be asked to come up with a deposit: 100% mortgages are rarer for discharged bankrupts.

It may be worth waiting a year or two, the further you are from your bankruptcy, the lower the rates you are offered are likely to be.

Keep an eye on this thread, as I'm no expert on mortgages, but I'm going to ask someone, we know, who is, to add his views on the topic.

All the best,

Andrew

ollie · Joined: 05 Dec 2006 Posts: 2

Thanks, I will keep watching the discussion.

So, gradually will i be able to get a better mortgage deal or will it take 6 years for me to get an good deal, or will I not be able to get a good deal at all even after the 6 years.

cheers

henryp · Joined: 11 Dec 2006 Posts: 1

Hi,

Although bankruptcy will remain on your credit file for 6 years you will normaly be able to apply for a mortgage after you have been discharged for 1 year. The bankruptcy entry on your report will still impact on your mortgage application along with any other adverse credit history and you will usually be offered less favourable terms than you might otherwise be offered on the high street.

However, competition from the lenders in this sector has stiffened and you are now able to obtain very reasonable mortgage deals if you have a poor credit history. You will need a minimum of a 10% deposit and the amount you can borrow will depend on your income and other factors but for a guide you will get between 3.5 and 5 x your gross salary.

There are many lenders available to clients in your circumstances.

At Charcol we will obtain a full picture of your circumstances and find you the best mortgage deal that your credit history will allow you to have.

Andrew · Posted: Tue Dec 12, 2006 12:20 pm Post subject:

Thanks Henryp - really helpful.

Best regards,

Andrew