Does anyone know if it's possible to get a mortgage once you have been discharged from bankruptcy. If we do get one it will only be 50% loan to value as our parents will invest half the money until the BR no longer shows on our files in six years time. Thanks.
I'm quite sure that with a 50% deposit you will indeed be able to secure a mortgage after discharge provided the other funds are loaned, or gifted, to you directly and you pay this sum as deposit.
If your parents insisted on being named on the deeds as joint owners and paid their 50% direct to the seller this would still be an issue for you as you will attempting to raise a mortgage for 50% of the property at 50% of the property value which effectively is a 100% mortgage on the share of the property you will own.
As you would be ex bankrupt you need to do a lot of shopping around first to get the right deal. Many will try to charge high interest rates but this should not be acepted without question.
Loans are all about risk and in my opinion the lender risk is virtually zero, bankrupt or not, unless the housing market were still likely to plummet a further 50% in value in the foreseeable future.
The 50% we get from parents will be used as a deposit and only our names on the deeds so we will be borrowing 50% of the property value. Do you know and specialist lender or broker we could use? Thank you.
I have today spoken to a broker friend of mine regarding your question.
I must apologise but it would appear that irrespective of risk the major mortgage lenders are now following some of the government advice to the letter. That is, as a newly discharged bankrupt offering a 50% deposit you are almost certain to be declined. How things change by the month.
He is looking into things further for me and will let me know if he can find ANY lenders willing to lend in your situation.
The advice I received was for your parents to buy the property, you "rent" from them to cover the monthly mortgage payments then buy from them (at 50% as is the offer now) when you are 6 years into discharge or when lender's policy changes, as it inevitably will.
I will let you know if my contact does find any current risk takers but no doubt the interest under the current regime will be heavy.
Thought it was too good to be true. We will probably wait six months or so after being discharged before applying but may try and save some money and borrow about 40% LTV which might help.
Could you ask your broker friend if it would be easier for us to buy a property on a buy to let basis, putting down 40-50% deposit or would the same rules apply.
new mortgage
Posted - 15 April 2009 : 14:09:14
