Questions you have before making a decision to go Bankrupt and the Bankruptcy process

Moderators: TalbotWoods, JaneClack

By Shell-e
#4145 Hi all

Currently my partner and I live with our parents, my boyfriend is going to go bankrupt at some point (when he gets round to it !) we want to live together by the end of the year.

We had said prior to the bankruptcy decision that we would just rent and buy in the near future but now he is going to go bankrupt I wanted to know the effect it will have on us getting somewhere to live.

What problems will be encounter if we want to rent? We both work for the NHS and would be able to get references from work stating what we earn as well as personal ones.

Can you get a mortgage after your Bankruptcy has ended?

If not a mortgage, what about Shared ownership, where you part rent and part buy –Would we be able to do this?

If so would we be able to straight after the bankruptcy ends or should we wait a few years?

Living with our parents is not an option for much longer esp. as my partner has a daughter from a previous relationship and more space is needed!

I do not earn enough to buy a property on just my salary.

Last edited by Shell-e on Mon Feb 21, 2005 3:04 pm, edited 1 time in total.
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By JaneClack
#4153 After discharge your boyfriend's bankruptcy will remain on his credit file for another five years. However, during this period - but I would give it a few months! - he can look for a mortgage. You will not be able to trawl the High Street lenders but there is a very large subprime market that specialises in this kind of lending. There will need to be a deposit as usually they will not lend over 85% of the purchase price and there will be a premium of 1 to 1.5% over normal charges but after a few years you could then swap to a normal High Street lender as you will haev proof of payments. So bankruptcy does not mean he can never own his own house!
By Shell-e
#4154 Thats made me feel abit more hopefull.

If my pay improves (it better!) then ill get the mortgage on my own, if not then we can try to buy a place together a year or so after his discharge.

By Veronica
#4222 Please can any one tell me from their experiences how easy it is to really get a mortage after bankrupcy?

I know it's not an impossibility but how possible is possible?!?! I know one is penalised in terms of higher interest rates and fees.

Which recommended companies specialise in this area?

Can anyone help :? ?
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By JaneClack
#4232 Quite possible is all I can say if you have the money to do so.

As we have commented before it is unlikely that you would be able to stroll down the High Street but there are a large number of subprime lenders who specialise in providing mortgages for people with adverse credit. Within 18 months of going bankrupt you could have a mortgage. You would need to contact a specialist mortgage broker or IFA for some help.

There is a website (and there are others too!) - which specializes in this field and you could see the type of rates you would be paying. Also I have to say you would need to save up a deposit as they rarely advance more than 85% of the purchase price. I am not too unhappy about that coming from the generation when a 100% mortgage didn't exist and you had to have saved with the relevant building society before you could even apply!

Nobody can talk about percentages but lots of people get them.