Mortgage Deposit rules after Bankruptcy

[Keith e]

Hi All,
I am out of bankruptcy on the 29th July 2016, I had a house bought in 2008 €285,000 now worth around €110,000,
after going bankrupt I signed the house back to bank with the keys through the OA,

had moved out as house became unliveable due to various reasons and was renting at the time of going bankrupt.

my question is now do I have to save a 10% or 20% deposit.

 

[Sarenco]

20% - you will not be a FTB.

However, the deposit requirement will probably be the least of your challenges in securing a mortgage as a discharged bankrupt.

 

[Brendan Burgess]

It is very unlikely any lender will give you a mortgage for at least 5 years.

The rules could be very different then.

Brendan

 

[Keith e]

It is very unlikely any lender will give you a mortgage for at least 5 years.

The rules could be very different then.

Brendan

Thanks,
Just looking to start saving the deposit I have a good job now and would be looking to borrow about 2.5 times the salary value, looks like its 20% so that's the target, its hard to save 20% while renting buts that's what has to be done.

 

[MikeL2007]

It is very unlikely any lender will give you a mortgage for at least 5 years.

The rules could be very different then.

Brendan

Hi Keith,

Just to clarify Brendan's comment which is a valid one, the 5 years will be from point of declaration of bankruptcy, not discharge. The debt will disappear from the ICB records after 5 years, not 5 years from discharge - so effectively 3 years from now.

[broken link removed]


We're in a similar position.

One hope is that the banks have a discretionary amount of exceptions they can use when looking to 'bypass' the 20% rule central bank rule, they may use this for people who effectively have no debt and have proven rent payments histroy etc etc.

A long shot but you'd never know.

Mike