Question

Jon, years ago I went bankrupt, and it was a good thing. I was so far in debt and there was no way out. Now after about 5 years I am looking to buy my first property, but am concerned that the bankruptcy will stop me from getting a mortgage. I have a good deposit, nearly 25%, and a solid work background and job. I would not like to think what happened years ago would hang over me for my entire life. Any advice?

Chloe

Answer

Chloe,

I can understand your concerns, however, like you I would like to think something from years ago will not hinder you getting on the property ladder.

Naturally on a mortgage application they may ask if you have ever been bankrupt, and they will do a credit search, or review your credit history, and credit score. You may wish to review your credit history and credit score prior to making a mortgage application, that way you know what is there, and correct any errors; if there are any.

Getting a mortgage loan is based on many factors, and credit is just one of those factors. Affordability, and also your deposit are others.

If you have been working, paying your bills, have a good rental history/reference from your landlord, and can show affordability for the loan, I would hop and believe your mortgage would be approved.

There are also some eligibility checkers you can use to see if you would be approved for a loan, without affecting your credit score. But reviewing your credit file is a good place to start.

Regards,

Jon

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