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    • JaneyLouWho
    • By JaneyLouWho 16th Jul 17, 7:45 AM
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    JaneyLouWho
    Skipton BS lending criteria - previous repossession
    • #1
    • 16th Jul 17, 7:45 AM
    Skipton BS lending criteria - previous repossession 16th Jul 17 at 7:45 AM
    Hello all - my first post here, thanks in advance for any advice you can give! I'm in the process of making a mortgage application, I've got my DIP from Skipton BS, and will be calling tomorrow all being well to go through the full application process. My credit file is clean, I have a 10% deposit and a DIP after a hard credit search so you would think all will be well. However, I used to own a property which was (voluntarily) repossessed in 2009. It's no longer on my record but I presume I will be asked about it as part of the full application. I can't find any information about whether Skipton will lend given a previous repossession. Their lending criteria does say they'll lend to someone who'd been bankrupt so long as 4 years had passed since discharge - I was never bankrupt and it's been 8 years since the repossession. The lending criteria doesn't mention repossession. Does anyone have any insight for me? Is repossession viewed as worse than bankruptcy?
    Last edited by JaneyLouWho; 18-07-2017 at 5:40 PM.
Page 1
    • ACG
    • By ACG 16th Jul 17, 9:30 AM
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    • #2
    • 16th Jul 17, 9:30 AM
    • #2
    • 16th Jul 17, 9:30 AM
    Why have you had a credit check carried out if you do not know whether or not you fit criteria?

    If you have quirky circumstances, you need to check the criteria before doing credit checks otherwise you are potentially causing more harm than good.

    I think you may be ok, but I would call them up and ask before making a full application.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • Westminster
    • By Westminster 16th Jul 17, 11:19 AM
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    Westminster
    • #3
    • 16th Jul 17, 11:19 AM
    • #3
    • 16th Jul 17, 11:19 AM
    In your situation a broker will be worth their weight in gold in time & stress reducing wasted applications.
    Hi. Martin has asked me to tell you I'm a Board Guide on the following boards: Mortgages & Endowments, Mortgage-Free Wannabe, House Buying, Renting & Selling, Small Biz & Charities' MoneySaving and Charities.

    I'm a volunteer to help the boards run smoothly, and I can move and merge posts on there. Board guides are not moderators and don't read every post. If you spot an inappropriate or illegal post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.
    • JaneyLouWho
    • By JaneyLouWho 16th Jul 17, 3:44 PM
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    JaneyLouWho
    • #4
    • 16th Jul 17, 3:44 PM
    • #4
    • 16th Jul 17, 3:44 PM
    Thanks both! I agree, it possibly would have been sensible to go through a broker but I have done my research, read all the lending criteria, figured out which rate and mortgage terms we prefer and have done our background on whether Skipton has good customer service. So I'm happy with the decisions taken so far, the DIP we knew would leave a file footprint but we knew that this lender was most likely to meet our needs. I had read that the 4 year time limit on bankruptcy was in their lending criteria so assumed an 8 year old repossession would be fine. This is what I am looking for advice on - is repossession viewed as a worse mark on your record than bankruptcy, and has anyone obtained a mortgage after repossession with Skipton? Their published lending criteria don't mention repossession at all.

    As an aside - is this the best forum for this thread? I'm a newbie and there are so many other places I could have posted this - is it worth putting it elsewhere on MSE for more relevant responses?
    • silvercar
    • By silvercar 16th Jul 17, 10:01 PM
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    silvercar
    • #5
    • 16th Jul 17, 10:01 PM
    • #5
    • 16th Jul 17, 10:01 PM
    As an aside - is this the best forum for this thread? I'm a newbie and there are so many other places I could have posted this - is it worth putting it elsewhere on MSE for more relevant responses?
    Originally posted by JaneyLouWho
    Welcome to the forum JaneyLouWho. This is definitely the best place to post about mortgage applications.

    Hopefully someone will have an answer for you, if not a quick phone call to the lender may be worthwhile.
    I'm a Board Guide on the Debate House Prices & the Economy, House Buying, Renting & Selling, Mortgages and Endowments, In My Home incl DIY, Overseas Holidays & Student boards.
    I'm a volunteer to help the boards run smoothly, and I can move and merge threads there. Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of moneysavingexpert.com.
    • JaneyLouWho
    • By JaneyLouWho 17th Jul 17, 12:43 PM
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    JaneyLouWho
    • #6
    • 17th Jul 17, 12:43 PM
    • #6
    • 17th Jul 17, 12:43 PM
    Thanks Silvercar. I had a chat with the lender this morning who said they couldn't tell me whether they allowed previous repossessions or not without going through a full application. Apparently there are no published lending criteria around repossession, unlike around bankruptcy. So it sounds like its not an out and out no, but still a bit frustrating that I'll have to apply without certainty that even with a good salary, an affordability calculation well within range, a decent deposit plus all other necessary funds and a clean credit file that they might turn me down over a historical issue.

    In other news, I now understand why they say that house buying is one of the most stressful things a person can do
    • ACG
    • By ACG 17th Jul 17, 12:55 PM
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    • #7
    • 17th Jul 17, 12:55 PM
    • #7
    • 17th Jul 17, 12:55 PM
    I would probably take that as a positive.
    It basically means it will come down to scorecard. In effect it is within criteria, but will knock your application score down by x amount of points.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • JaneyLouWho
    • By JaneyLouWho 18th Jul 17, 4:02 PM
    • 16 Posts
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    JaneyLouWho
    • #8
    • 18th Jul 17, 4:02 PM
    • #8
    • 18th Jul 17, 4:02 PM
    Just an update in case anyone else is exploring their mortgage options after repossession - I had the Skipton mortgage interview today, it took about 90 minutes and they asked all the usual questions about lifestyle, affordability and credit. When the repossession came up they said it was within policy given it was over 8 years ago, but that the underwriters might have more questions about it. What kind of things might they ask me? I want to be prepared with all the info but I'm not sure how deeply they might look into it. Has anyone got any advice please?
    Last edited by JaneyLouWho; 18-07-2017 at 5:41 PM.
    • ACG
    • By ACG 18th Jul 17, 6:36 PM
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    • #9
    • 18th Jul 17, 6:36 PM
    • #9
    • 18th Jul 17, 6:36 PM
    Why did it happen will probably be the big one.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • ambc
    • By ambc 18th Jul 17, 7:40 PM
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    ambc
    Just wanted to jump in here as I'm going through a very similar application with Skipton right now, which has been placed by L&C.

    I had a property repossessed just over 10 years ago and this was also compounded by a bankruptcy at the same time - the reason being a perfect storm of simultaneous industry downturn, redundancy, and marriage breakdown. It was effectively out of my control, but I digress.

    I'm applying with my fiance who has always had squeaky clean credit, and there is no adverse on mine at all in the last 6 years. Green dots all the way, and I've worked hard to make sure it has stayed like that.

    Anyway, we passed the DIP without any fuss (which leaves a hard footprint with CallCredit), affordability is ok, and we're now at the full application stage where Skipton have requested documents: IDs, latest bank statements & payslips, etc. They should receive the final bits they've asked for tomorrow.

    I've been completely honest about the bankruptcy and the repo, and included quite a detailed statement along with the application about how and why and when, and more importantly, what I've done since to reduce any risk.

    However... back to the point... way back at the beginning of the process, before seeking a DIP, our broker placed a call with his business dev manager at Skipton regarding my situation, and the reply was: "As the repossession was part of/caused by the bankruptcy and your clients have been discharged over 4 years, then, in principle this is ok for Skipton."

    So, yes, a broker who can place that kind of call is invaluable in this kind of situation.

    Hope that info helps - and good luck! (I certainly need it!)
    • JaneyLouWho
    • By JaneyLouWho 18th Jul 17, 7:56 PM
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    JaneyLouWho
    That is really helpful AMBC, thanks! What information did you give, other than the circumstances leading to it? Did you give information about account numbers, price of sale, shortfall etc?

    Could you come back and update if they ask for further information? Good luck, hope you get your offer swiftly and smoothly!
    • ambc
    • By ambc 18th Jul 17, 8:40 PM
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    ambc
    I must stress that our broker gave his bus dev manager a full overview of our situation before he got that answer, so I don't know whether that's a blanket policy or one that was applied to our individual situation.

    I also only gave details of circumstances. To be honest, it was such a long time ago and I've kept no documentation whatsoever from back then, so I couldn't quote an account number if my life depended on it, and I could only offer a guess (albeit an educated guess!) in terms of numbers. And I assume that that kind of inaccuracy wouldn't really be helpful to anyone.

    Having said that, nobody has asked for that info either!

    Sure - I'll update when... if... we get a decision. )
    • JaneyLouWho
    • By JaneyLouWho 20th Jul 17, 1:14 PM
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    JaneyLouWho
    How are you getting on ambc - heard anything back from Skipton yet?
    • ambc
    • By ambc 20th Jul 17, 1:51 PM
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    ambc
    As it happens, I've literally just heard back from my broker (who is fielding questions from Skipton) and was heading back here with a question!

    Skipton have now asked for figures relating to the bankruptcy and the repossession.

    However, this all happened over 10 years ago and I certainly don't have any records of this. I understand that banks themselves also generally don't keep records going back more than 6 years or so, either. I'm not even sure I could name the financial institutions involved with any degree of accuracy, anyway.

    Additionally, it was all handled by the Official Receiver which meant it was effectively illegal for me to be in direct contact with creditors, so I left it all to them. It was a horrible and stressful time too, which doesn't help make it any easier to remember.

    However, I do remember who petitioned for my bankruptcy and I have a vague idea of the amount the petition was for (it was around £1500) and there were a couple of low <£2k ish balance credit cards).

    I also know how much I purchased the property for and roughly how much deposit I put down (there was nearly £25k in equity at point of purchase, not including any increases while I owned it), but as for whether there was a repo sale price shortfall, I have absolutely no idea.

    So, I've just updated the broker with that info, being as honest as I can be without resorting to making up figures, and have asked for advice from them.

    In the meantime, has anyone else ever been in this position - where a lender is asking for historical figures that I can't possibly provide?

    Or have any other brokers ever advised on this kind of thing?

    Thanks.
    • JaneyLouWho
    • By JaneyLouWho 20th Jul 17, 2:03 PM
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    JaneyLouWho
    Eeek. Fingers crossed then.
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