Discussions on life after your bankruptcy discharge.

Moderators: TalbotWoods, JaneClack

By Titanic
#290593 Hi Folks

Been awhile for me since my br in 2007 (and early discharge) and have to say have kept taking it a day at a time...

But I'm now 5 years past my br and looking to take out a mortgage. I have sorted all my credit ref reports out.. even Crapquest finally (after 4 years) succumbed to correcting the data entry they had on me (they bought a debt after my br)!

I am looking at a LTV of 55% - 70% for a mortgage of a standard 3 bed property. Problem is I'm struggling to find a 'reputable' mortgage company that won't try to screw me or bump the interest rate to 1980's record highs!! (That's just my perception anyway but I doubt I'm too far off the mark).

The company's I've looked at (but not contacted) so far are Norton Finance (which scares me alot from reading previous nightmares about them online), CML & AdverseCreditMortgage.
Previously I had a mortgage with Chelsea and closed the mortgage several years before my br due to a split. So will also try them as a alternate 'main-stream' lender.

I have contacted so far a broker who says he can help but am awaiting the 'numbers'!? I know I will definitely be paying a higher percentage but where do I draw the line (in line with the current BOE rates)? 8% 9% 10%??

Would I be better of waiting till 2013 when the br falls off my credit file? But as with us all, I would like to get things back on track...

Any and all advice welcome.


Titanic (slowly resurfacing) :shock:
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By TalbotWoods
#290673 Hi ya Titanic

Going to be honest and say I dont know the answer to this, BUT....

In the current financial crisis, a LOT of people with gold plated AAA credit ratings are getting turned down, plus many of these are also being asked for sky high deposits and extortionate rates, so....

If they are getting hammered, then I dread to think what effect a bankruptcy on the CRF would have. I do know that most credible lenders are demanding a 20-30% deposit to be available before they will even legitimately look at you!

By Titanic
#290683 Hi TW

Thanks for responding. I was half expecting to hear that (I hope I get a half decent reply from the broker)! I can swallow an increased % rate but I'm not buying into a 10% plus interest rate, that's just criminal! (esp. with the boe rates being so low)!!

I know I'm a begger and I can't be choosing so I may have to say no, if I can get a mortgage at all. But I will keep this thread updated as finding (searching for) info on this forum and finding answers always raises the spirits :D and atleast has given me hope.


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By TalbotWoods
#290743 Possible source of 'ethical' information my be from Payplans Whoislending website


By Titanic
#290813 Hi TW

Thanks for the link. I have emailed them and awaiting a reply (hopfully more promising than my recent reply from a broker)!

I have been offered a loan via a broker with MBS Lending Ltd. I have no idea if they are reputable or not?? Any ideas? But the deal is excessive but apparently the best the broker can offer.

It's 9% interest and directly into variable repayment (no discount, fixed or 2 year or 3 year deals) not that I want 9% fixed for 3 years mind! on 100K at end of term payback is 250K :shock:

Was a bit shocked myself! (was expecting what all the press say about adverse credit applications being 2 or 3pc higher than boe!

Oh well all is not lost yet :!:


Ps. In 18 months my BR falls off my record, will it make a difference then d'ya think?
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By TalbotWoods
#290853 be careful

MBS Lending is an intermediary, not a lender. They will try and find you a lender that will provide a mortgage, whcih will normally be with Melton Mowbray Building Society, their owners.

In a way a bit like the £49.95 guaranteed loan companies that OFT jump on from a great height.

Having said that I cannot say what they are like as an intermediary, but considering the broker is supposed to be an intermediary, I wonder why he is passing you on to another ...... possible referral fee!

I would also suggest looking at their information directly and maybe even giving them a call, it looks like you can get a better deal that your broker appears to be suggesting:

http://www.mbslending.co.uk/File/Produc ... Direct.pdf

By johnny 73
#290973 yep there's no reason why you cant contact mortgage providers directly, avoiding the broker as middle man and the fees they will apply, mostly for doing little that you cant do yourself.

you're going to pay a higher rate of interest due to your credit history so theres no point in spending more on brokers fees as well
By Titanic
#291003 Well after first 'testing the waters' with some more main stream mortgage lenders (Ie. asking them directly or via email if they would even consider a 4/5 year post bankrupt (as I don't want repeat credit searches made on me)) I am starting to see better results :D

The Chelsea have said they will consider a post BR if more than 36 months! The Halifax will also if post 48 months! So things are looking up...

The thing is in 18 months time or there abouts the br will fall off my file.. Would it pay to wait (i'd have a better deposit and clear file). Or does a trace of the br follow you for life?

Left field question here... Crapquest (debt collection agency) bought a debt (way way after my BR) from a company I had a loan with that was included in my BR. They created a new credit reference entry with Experian. It has taken me ages to get them off my case and finally correct their credit ref entry. How doe's this happen? I'm mean can they really legally do this? It's like a double wammy. Can another debt collection agency later in life purchase an old debt from my BR and raise a new credit ref entry? (If it was another ruthless debt collection agency like Crapquest I could spend years chasing my tail trying to put out fires)!!?

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By JaneClack
#291013 They could in theory due to debt sales and purchases but simple - if time consuming - matter to rectify and it won't happen very often
By Titanic
#298683 Hello again all,

Thought I'd bring this thread upto date.

I didn't have any luck with The Chelsea or The Halifax but it was purely down to my own unique circumstances! So don't let that put anyone else off. I have been told by several banks now that the br, although clearly not a benefit in gaining a mortgage, is not the problem. My issue is that I am also now considered an ex-pat (I have worked abroad for the last 3 years).

It was even suggested that I should get a job back home for a month or two and I would easily gain a main-stream mortgage, however I don't fancy leaving my present employer in the hope my position hasn't been filled by someone else (regardless of promises)!

There are a few main stream banks out there that have off-shore subsideries and my broker is currently looking into one of them and he seems fairly optimistic!! (well more than I have been of present)!

Now something odd had been suggested and I wanted some good opinions please...

I have now been advised that one of the (off-shore UK highstreet banks) would possibly be prepared to lend to me BUT it would be an UNREGULATED loan??

From what I read this is what 'unregulated' means; "non-regulated refers to buy to let, second charges or advances on the loan taken out before regulation came into play"

So why would I be put in an unregulated bracket?? (because it's off-shore?? Ie. not subject to UK law??). I will be the sole purchaser and it will be my primary residence (I.e. NOT buy-to-let). Is it me or are they trying to eek an extra 1% out of me??
The rate on offer is approx (3.99 + BOE rate) 4.5% to 4.8% dependant of various bits (and is straight into SVR) so the rate seems fair all things considered, and way better than 9%!!

A, What does an UNREGULATED loan mean exactly?
B, Could this type of mortgage have a negative impact on me at anytime? Or financially? (cost me more)?
C, And the mortgage repayments are quarterly? Does this sound normal? Will the interest rate be calculated daily/monthly or quartly? Could this be why it's paid quartly?

Many thanks guys n girls...