Mortgages And Bankruptcy

[razza81]

I was discharged from bankruptcy Nov 2012. My wife and I would like to get a mortgage. My wife can only get a mortgage for XXX amount and I was wondering how we would go about getting both names on the mortgage. If it isn’t possible, is there any way we can class my wage as in income so that we can get the mortgage solely in my wives name?

[bednobs]

as a discharged bankrupt, you probably will find someone willing to lend you money, but it will be at an extortionate rate. The first step will be getting your credit report and making sure it's accurate for your situation now. As to your second question, no. Lenders won't do that. After all if they took someone elses wages into account without them being on the mortgage, i could apply for example and tell them i want them to take elton johns wages into account, he just wont have anything to do with paying it back!

[razza81]

Thanks bednobs. The reason I asked the second question was because when my wife spoke to a mortgage advisor about getting a mortgage they advised her to contact a solicitor to say that we were separated and we could then use my income as child maintenance. I understand that this could get us round the problem but we both don't think this is strictly legal!!!

[bednobs]

so you would say you were separated so that she could declare extra income eg x pounds a month maintenance? one problem i can see with that is the mortgage co will probably want proof of that income (eg bank statements showing months of payments going in, or an official document showing that as you are separated you will be paying her this money. Another problem is mortgage fraud! If you go to a specialist broker, you'll probably be able to get them to help you get a legit mortgage. Another problem will be deposit - i presume as a bankrupt you are not sitting on a nice 10% deposit or have any assets to sell to get it.

[razza81]

I got into financial difficulty before meeting my wife. I have a well paid job and as my wife has taken over our accounts, we do have a deposit. The money isn't an issue, its actually getting the mortgage.
We will be contacting a specialist broker, we were just hoping to find out where we stand before facing any embarrassment.

[Vivkins3]

When we were in business, we were twice stung by people who owed us money taking shelter behind the bankruptcy laws. Neither we, nor any of their other creditors saw a penny of our money. It wasn't a huge amount - about £1,000, but I still feel cheated by them. I therefore don't have any sympathy for people who have walked away from debts by declaring themselves bankrupt and consider themselves now to be "debt-free" and free to borrow all over again. Regardless of the legalities, the fact remains that you STILL have not paid money you owe to people.

Sorry to have to say that I hope that either you don't get a mortgage or that you have to pay extortionate rates for it.

[razza81]

Vivkins, I completely understand what you are saying. To be honest, I used to agree and would never pity anyone who had been declared bankrupt but situations change.
I don't want to bore you with all the details but my ex and I did build up a lot of debt. When the relationship ended she just turned her back on everything. I couldn’t afford the bills by myself and contacted her on numerous occasions to try and get something from her. I sold everything that I had to try and keep on top of the debt but that wasn't enough. I have lost my home, my car and my pride.
I have never been so embarrassed in all my life as I was when I had to admit to friends and family that I had failed. Luckily I have met someone who has stood by me and supported me throughout this horrific ordeal.
I don't want or expect sympathy. I just want to make a home for my wife who has been my rock throughout all of this and our child.

[tonywiltshire]

Bankruptcy, when honestly used is not the easy option most people seem to think it is particularly if post-bankruptcy restriction orders or undertakings are applied, which can last up to 15 years. Bankruptcy will probably mean you will find obtaining a mortgage difficult and expensive; there is also the humiliation and stigma which the 2002 Enterprise act may assist in reducing but will not entirely obviate. Accept the fact you were made bankrupt and some people may have suffered as a result and do nothing further which is not appropriate.

[cassa333]

I worked for a doctor that owned a Dr practice, a care home and a hostel/hotel. He had worked it so that none of the businesses impacted on the other. The hotel/hostel failed owing more than 3/4 of a million on that one business. He walked away with paying just £100k to the bank and not a penny to his debtors or staff. But still had his other two business.

I have absolutely no sympathy for bankrupts or those that wriggle out of their responsibilities but hay... that doesn't answer your question.

There will always be someone willing to lend you money but it will likely be at an extortionate rate to cover for the fact you are a bad bet.