Shared Ownership Mortgage Approved After Bankruptcy
A case study showing how a joint application secured a Shared Ownership mortgage after a previous bankruptcy, with agency employment and a gifted deposit.
- Publication date
- Case ID:
- 285625037
Question:
"Can I get a Shared Ownership mortgage if I've been bankrupt in the past?"
Customer situation
Joint application
First-time buyers
One applicant employed via an agency, one permanently employed
16% deposit gifted by parents
Shared Ownership property (25% share)
One bankruptcy, registered around 4 years ago and discharged after 12 months
One small default under £300 on a credit card, registered around 3 years ago and fully satisfied
Why This Wasn't Straightforward
This application required careful lender selection due to:
- A previous bankruptcy, even though it had been discharged
- Shared Ownership, which already restricts lender choice
- Agency employment, which not all lenders accept
The Outcome
Mortgage approved.
The lender took a practical view of the full picture, including the time elapsed since bankruptcy, stable employment, and affordability.
Key points
- Loan-to-value
- Based on 25% share
- Mortgage term
- 20 years
- Lender type
- A specialist lender experienced in Shared Ownership assessed the case and took a balanced view of the historic bankruptcy
- Mortgage Adviser
- Liz Cunningham
Who This May
Be Relevant For
Applicants seeking a Shared Ownership mortgage after a previously discharged bankruptcy
First-time buyers worried a past bankruptcy will prevent Shared Ownership approval
Applicants told they cannot get a mortgage because of a historic bankruptcy
Buyers unsure whether a bankruptcy from several years ago still affects mortgage eligibility
Plain-English Summary
This case shows that Shared Ownership can still be possible after bankruptcy. Time since discharge and current stability were key. Each case depends on the full circumstances.