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fiona.me
Starting Member
1 Posts |
 Posted - 14 March 2010 : 18:22:34
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| In another year, we will have been discharged from barnkruptcy for six years. We have been saving for a deposit on a house but worried that we still have to declare bankruptcy or that they can check back. Thank you for any advice. |
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debtinfo
forum expert
2826 Posts |
Posted - 14 March 2010 : 18:36:49
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| Hi, if they ask if you have ever been bankrupt then you will have to anwser yes |
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Richard P
Senior Member
United Kingdom
1701 Posts |
Posted - 14 March 2010 : 19:03:55
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Hi Fiona
you will be able to find mortgage brokers who can help you even now 5 years into BR
yes the market is tight but you can still have good mortgages
the higher % deposit you can put down the better the deal.
try not to wait too long before you go onto the housing market again, (I may be alone but i think that prices will start to rise again) at the moment you can really push for some decent discounts 10% +... some of the developers are seriously in the S**t
but at the same time I also think that interest rates will rise so be careful not to over expose your self
regards Richard |
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Housing
Senior Member
United Kingdom
1399 Posts |
Posted - 14 March 2010 : 22:03:01
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Fiona
I am inclined to be cautious about taking on a mortgage unless you are very comfortable on the repayments and have allowed for suitable rises in interest regates in about 12 - 18 months time when the economy is more stable.
Yes, you are probably able to get a mortgage - but you are likely to pay a premium. (I am not a mortgage advisor so would not even try to say anything on this aspect - you need professional FSA/IFA qualified)
The market will rise - and it will fall again in about 10 - 12 years - look at the history on this...
Be very cautious about your decision and I wish you well, Richard
"There are no problems - only solutions" |
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Housing
Senior Member
United Kingdom
1399 Posts |
Posted - 14 March 2010 : 22:09:31
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Hi again,
Just to re-affirm what debtinfo has said.
If you are EVER asked, "have you been bankrupt" - you are legally obliged to say yes. Not to do so is a criminal offence and if discovered, you would be in trouble.
Richard
quote:
Originally posted by fiona.me
In another year, we will have been discharged from barnkruptcy for six years. We have been saving for a deposit on a house but worried that we still have to declare bankruptcy or that they can check back. Thank you for any advice.
"There are no problems - only solutions" |
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Blackie
forum expert
United Kingdom
565 Posts |
Posted - 15 March 2010 : 09:10:59
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Hiya Fiona
I agree whole heartedly with Housineg. However I know that certain application forms ask you if you have been bankrupt within the last six years - the length of time the bankruptcy stays on your credit file.
Kind regards
John Blackadder |
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Bridgewood
Junior Member
United Kingdom
222 Posts |
Posted - 15 March 2010 : 09:42:35
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Hi Fiona
Just to add to the previous posts, any mortgage lender will do a credit reference search, and it is probable that the bankruptcy will still be registered.
As others have said, if asked the question you have to answer honestly - a lot of lenders won't be too concerned with what happened 6 years ago, but they still need to know |
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fishface
Starting Member
United Kingdom
1 Posts |
Posted - 15 March 2010 : 15:56:57
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Thank you so much for all your replies. I feel more confident about the whole thing now. I would always declare it if asked - just wish they wouldn't ask:)
We had hoped to get a key worker (teacher) mortgage of some kind but think this will be out of the question as they use high street banks I believe.
Anyway, will concentrate on continuing to save what we can.
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Richard P
Senior Member
United Kingdom
1701 Posts |
Posted - 15 March 2010 : 16:28:02
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Hi Fiona / fishface
the key worker part share ownership schemes can be quite good, the loan / mortgage puts a lot of emphasis on your employment rather than your previous finances.
most of the local councils have a "specialist" who understands the process, taking into account the advice given above and should you want to re enter the housing market, your local council may be the starting point for research.
regards Richard |
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leen.ow
Starting Member
31 Posts |
Posted - 15 March 2010 : 20:45:26
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Just been reading this topic. I didn't realise you had to tell of BR outside of the time it's on your credit file. What effect does it have if you tell a company you went BR more than 6 years ago? If you answer 'no' what methods are used to find out? And isn't it defeating the object of BR being a means to a new beginning? I am having dounts about BR now because I am less than comfortable about it affecting the rest of my life!
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Housing
Senior Member
United Kingdom
1399 Posts |
Posted - 15 March 2010 : 21:26:45
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Hi
It is true to say that after 6 years, the credit file will probably be "tidy."
BUT, it must be disclosed for life.
The reality is that an average person is not going to be asked the question that often and therefore post BR, you can have a new life.
It is true to say that in the fullness of time (after 6 years in particular) a discharged BR will be able to re-build their credit file.
In general, I do not think one should dwell on BR post BO and then discharge, but there is that question, have you ever been bankrupt... The answer is Yes.
As opposed to have you been bankrupt in the last 6 years... (if it is obver 6 years, then the answer could justifiably, be NO)
Failure to disclose when asked the "ever" question will be seen as a fraudulantact.
BUT, look at the positives:-
Your unsecured debt goes upon petition with the BO
Your creditors cannot in normal circumstances, do anything to recover your debt post BR
You can have a fresh start
There is no other method of removing debt like BR
Be positive! Richard
quote:
Originally posted by leen.ow
Just been reading this topic. I didn't realise you had to tell of BR outside of the time it's on your credit file. What effect does it have if you tell a company you went BR more than 6 years ago? If you answer 'no' what methods are used to find out? And isn't it defeating the object of BR being a means to a new beginning? I am having dounts about BR now because I am less than comfortable about it affecting the rest of my life!
"There are no problems - only solutions" |
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In another year, we will have been discharged
