Will I ever...

[Thompson24]

hi guys

will i ever be able to get a mortgage again. Ive had my own house for about 7 years, however last year i was running my own business which went bust, i lost it all and had to voluntary hand back the keys for my mortgage property.

After 7 mths of bankcruptcy I was discharged as it was shown It was more the franchisee company who forced us into a corner and personally had hardley any debt. I was discharge in Feb this year early. Ive just opened my own business as a partenership three weeks ago and currently in a private rented house £550 a month.

There is a few houses round here going for £40k-£90k and wondered if i would ever be able to get a mortgage now? I have a 5% deposit saved up and between myself and my partner are taking home approx £2000 a month wages.

Would i ever get approved now?

We would even consider the house being in one of our names if it ment we could get a buy to let mortgage and then the other partner being a tennant?

[mmmortgages]

Hi Thomson,

You need to establish how you stand from a credit score/file point of view, hopefully your bankruptcy issues have been noted on your credit file. Assuming this is ok you'll also have problems finding a 95% mortgage at the moment as almost all lenders seem to have turned their backs , for the time being anyway.

[IFA]

Sorry but it really doesn't look too promising from what you've said.

Buy to Let mortgages require a minimum of 25% deposit these days, and even then most lenders require you to have proof of sufficient personal income to cover the payments if there is no tenant in the property. With your recent business start up you will not have the necessary trading accounts to prove this. There is a BTL lender that will lend without proof of personal income, but they require a deposit of 30%.

To get a personal mortgage at 95% LTV you need to have an established relationship with one of the few banks who are offering this, and even then you will need to have a squeaky clean history.

Handing back your keys to your lender, even if voluntarily, is normally recorded on your credit file as a reposession, and if that's the case you will find things very difficult.

Even if you haven't got a historic reposession on your file, the bankruptcy will be there for 6 years from the date of discharge and needs to be disclosed. During the six year period this will gradually lose it's relevance from a lending point of view - but generally lender's look on this much more kindly if discharge is earned through repayment of debt rather than it simply being wiped out.

All in all it's not looking too promising, but as always I would recommend finding a local broker (ask friends for recommendations) that may be able to talk things through with you in more detail than you can do on a public forum.

Good luck!

[Dan_Manchester]

As stated above you will probably have to work your credit rating back up by having small loans / credit cards / phone contracts etc in your name and to pay them on time and in full etc to retry and 'rebuild' you score.

There is a number of websites you can view your credit rating online, most offer the first month free but you can of course cancel before they start charging for the 2nd month (I really don't understand why poeple want to pay c. £10 a month to view their credit report... but hey ho, each to their own!).

Good luck!