Large Mortgage Approved After Bankruptcy by a Building Society on High Street Rates
A case study showing how a joint application secured a large mortgage at high street rates after a historic bankruptcy, CCJ, and defaults.
- Publication date
- Case ID:
- 116125002
Question:
"Can I get a large mortgage if my partner was bankrupt in the past?"
Customer situation
Joint application
Previous homeowner
One employee and one company director
Around 16% deposit from mixed sources
Standard residential property
One bankruptcy, registered around 5 years ago and discharged after 12 months
Two satisfied defaults, totalling around £3,300
One CCJ under £200, registered around 4 years ago and satisfied
Why This Wasn't Straightforward
This application required careful assessment due to:
- A past bankruptcy, even though discharged several years earlier
- Historic CCJ and defaults
- High loan amount, increasing scrutiny
- Complex income due to company director status
The Outcome
The mortgage was approved by a building society, offering standard residential rates rather than specialist pricing. The lender assessed the application using manual underwriting and took a balanced view of the historic bankruptcy alongside the applicants' current financial position.
Key points
- Loan-to-value
- Approximately 84%
- Mortgage term
- 29 years
- Lender type
- The mortgage was approved by a building society using manual underwriting and a full assessment of the applicants' financial position
- Mortgage Adviser
- Luke Jacobs
Who This May
Be Relevant For
Applicants seeking a larger mortgage after a historic bankruptcy
Buyers concerned that past bankruptcy limits access to standard high street residential rates
Applicants told they must use specialist lenders due to historic bankruptcy
Higher-income households with resolved bankruptcy, CCJs, or defaults seeking mainstream lending
Plain-English Summary
This case shows that historic bankruptcy does not automatically rule out larger mortgages. Strong income and time since credit issues were key factors. Each lender assesses risk differently.