Only subprime lenders for ex bankrupts?

watcher27 · 20 March 2018 at 8:44PM

So, we were declared bankrupt Jan 2012 and discharged 1 year later.

Its now been over 6 years and my credit file is up to date with the bankruptcy and all defaults removed (Experian score is 989 out of 999).

Throughout bankruptcy we kept our mortgage as it was with NRAM as the house was in negative equity, we purchased back the OR's interest as well. Also kept phones etc

So now we have £106K worth of equity in our property and would like to move.

Problem is, our mortgage broker has told us that we won't get a mortgage now with any high street bank and our only hope is a sub prime lender with a higher interest rate

Is this right?

We owe £148K settlement, and house is worth £260K, property we want to buy is £295K but is in need of renovation so would be using £65K of equity towards new mortgage and keeping the remaining amount for renovation, fees and also to clear a £6K loan that we got to do up current property (which had the desired affect on its value)

On paper, we can more than afford the new property, with having just over £1K spare a month after ALL outgoings have been paid.

Any help or suggestions would be appreciated!

[Deleted User] · 20 March 2018 at 8:51PM

Sub prime lenders are willing to lenders to high risk customers at a higher rate. The mainstream lenders don't have the same risk appetite.

It's nothing to do with your credit score, as that's just a made up number than lenders don't see.

But it's not a black and white situation. The older the bad stuff, the bigger your deposit, the higher up the lender ladder you can get.

ACG · 20 March 2018 at 9:02PM

Speak to a different broker.
5 years discharged and there are at least 2 high street lenders who will consider in addition to a few other non adverse lenders.

You will not have the pick of the lenders until you are 6 years discharged but with that level of deposit you should have options.

GazHatesBanks · 20 March 2018 at 9:03PM

There are a number of High Street lenders that will consider you after bankruptcy at normal rates, especially as it is now over the 6 year mark.

Contact a whole of market broker that specialise in people with adverse credit history (not the ones in an estate agency)

watcher27 · 20 March 2018 at 9:06PM

ACG wrote: »

Speak to a different broker.
5 years discharged and there are at least 2 high street lenders who will consider in addition to a few other non adverse lenders.

You will not have the pick of the lenders until you are 6 years discharged but with that level of deposit you should have options.

Thanks, but I thought It was 6 years since bankruptcy? not 6 years since discharge?

The BR has dropped off my credit file.

ACG · 20 March 2018 at 9:37PM

Most lenders go off the discharge date rather than the registration date.

There is only one lender I know of who goes off the registration date, but there are other lenders who do not need 6 years discharged.

wharty · 21 March 2018 at 11:37PM

I!!!8217;m discharged 4 years in June and Nationwide tell me they are happy to lend now. Yorkshire Building society also said yes but they require 15% deposit because I have been bankrupt. Yorkshire said that applies for !!!8220;if you have EVER!!!8221; been bankrupt.

Skipton may well lend to you too, they consider 4 years after discharge.
Look at the lenders intermediary sites they will give you a good idea what is required to fit their criteria.

ACG · 22 March 2018 at 9:18AM

wharty wrote: »

I!!!8217;m discharged 4 years in June and Nationwide tell me they are happy to lend now. Yorkshire Building society also said yes but they require 15% deposit because I have been bankrupt. Yorkshire said that applies for !!!8220;if you have EVER!!!8221; been bankrupt.

Skipton may well lend to you too, they consider 4 years after discharge.
Look at the lenders intermediary sites they will give you a good idea what is required to fit their criteria.

One thing to add to this is that fitting criteria does not necessarily mean you will be accepted. Some lenders are more relaxed than others but it will also come down to the rest of your application.

Please dont take this the wrong way as I have no idea how much knowledge you have, but the saying goes a little bit of knowledge can be worse than no knowledge at all.

But your post is a great example of why I said to the OP find a new broker. It is worrying that a non professional knows more than a Mortgage broker. Maybe you have missed your calling...or dodged a bullet :P

The_Real_Cheddar_Bob · 25 March 2018 at 12:24AM

Mortgage one with accord
Mortgage two with Barclays

Never been near a “sub prime” lender. You might be surprised

Only subprime lenders for ex bankrupts?

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