Author Topic: Mortgages for Discharged Bankrupts  (Read 17388 times)


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Mortgages for Discharged Bankrupts
« on: Feb 01, 2015, 12:28:09 PM »
Hi Guys

I'm two and half years discharged now and finally coming out the other side of my bankruptcy.

I was under the assumption that I would have to wait until 6 years' before I would be eligible for a mortgage. However, I recently made an enquiry with an online mortgage advice company was passed to a really nice guy who seemed to be very experienced in this area. I trust that he knows what he's talking about.

He told me I would be eligible for a mortgage now if I could raise another 10% (I have around a 20% deposit and could probably borrow the rest from friends and family) but that it would be at much higher than standard high street rates. He also said that if I was to wait until 3 years' since discharge that he could get me a mortgage for 15% deposit at near high street lender rates.

I have a couple of questions though.

He said that the fee is usually a bit higher for those with bad credit history's as it involves a lot more work on his part. The fee is only payable upon successful completion of the mortgage. However, I do feel a bit concerned about this. Surely, for a mortgage broker, it requires exactly the same amount of effort to get somebody a mortgage whether they're bad credit or not. Is this something I should expect???

I'm really happy that I can get the mortgage. However, I'm also not sure whether I should wait until the three years' to get a much lower rate (he seemed to recommend this if possible). I'm trying to be strict with myself and don't want to let myself fall back into debt but, at the same time, I've found a house that's an absolute bargain and really don't want to miss out. I could always remortgage at a lower rate in a couple of years'.

What are everybody's thoughts? Should I wait it out? Do you think the mortgage market could shift dramatically in the next six months to mean that the same deal isn't out there any more or that the interest rates will be higher?

What to do. I would appreciate any feedback you could offer.