Shared Ownership Mortgage Approved at 90% LTV After Bankruptcy and a CCJ
A case study showing how self-employed first-time buyers secured a 90% LTV Shared Ownership mortgage after bankruptcy, a CCJ, and several defaults.
- Publication date
- Case ID:
- 55725046
Question:
"Can self-employed buyers get a Shared Ownership mortgage after bankruptcy?"
Customer situation
Joint application
First-time buyers
Both applicants self-employed as sole traders
Multiple years of self-employed income
Around 10% of the share value from savings
Shared Ownership property (35% share)
One bankruptcy, registered around 2.5 years ago and discharged after 12 months
One CCJ of approximately £3,200, registered around 18 months ago and satisfied
Several small defaults, mostly under £1,000, with a mix of settled and historic balances
Why This Wasn't Straightforward
This case involved several overlapping complexities:
- Recent bankruptcy and CCJ
- Shared Ownership, narrowing lender options
- Self-employed income, requiring detailed assessment
- Historic missed payments alongside defaults
The Outcome
Mortgage approved.
The lender assessed the overall sustainability of income and the time since the bankruptcy rather than relying purely on credit scoring.
Key points
- Loan-to-value
- 90%
- Mortgage term
- 36 years
- Lender type
- A specialist lender assessed the case, taking a flexible view of self-employment and recent bankruptcy
- Mortgage Adviser
- Alex Wright
Who This May
Be Relevant For
Applicants seeking a Shared Ownership mortgage at high loan-to-value after a discharged bankruptcy
Buyers applying for a mortgage with a satisfied CCJ following bankruptcy
Applicants declined for a Shared Ownership mortgage due to insolvency or CCJ history
Buyers unsure whether high-LTV Shared Ownership lending is possible with historic insolvency
Plain-English Summary
This case shows that Shared Ownership may still be possible after bankruptcy. Recent credit issues narrowed options but did not prevent an approval. Lender criteria and timing made a key difference.