NewBuy 5% for Discharged Bankrupt (or 90% LTV)

financialstress

Hi,

Has any discharged brankrupt succesfully purchased a property on the NewBuy scheme? Or secured a Mortgage with 90% LTV?

I want to purchase a property, happy to pay higher interest due to my background - but fed up of paying £18k a year on rent and really want my own place.

I fear after reading on here that it's next to impossible to obtain a mortgage unless you have a really high LTV %.

Any advice or success stories welcome... rude people who aren't going to be helpful need not post! :T

Dave_Ham

No chance I am afraid - said nicely

financialstress

Oh, that's interesting. A Mortgage broker I have been speaking to seems to think it's not "impossible" is he just wasting my time?

Dave_Ham

On a Newbuy 95 percent offering yes. Cannot understand why though as unless he/she charges a fee no merit in wasting their time too....!

financialstress

OK, well no doubt I will hear the bad news soon. Approved for the decision in principal, now just provided all of the paperwork and discharge cirtificates... I will keep you posted (I am trying this application with a 9.9% deposit on NewBuy - the highest I could do)!

droiderm

I can only assume that it's nationwide ?

Dave_Ham

I will be really interested in how this goes, as technically I cannot see which Newbuy lender is going to suffer relatively recent bankruptcy.

As suggested, subject to credit score Nationwide may consider although any of the others do not lend to bankrupts and this will come out later in the process.

If this is a Halifax DIP, please do be careful.

All the best

kingstreet

Is it possible there's a broker out there who hasn't noticed the Halifax criteria no longer reads "subject to credit score" and has changed to "We do not accept applications from customers who have ever been declared bankrupt or have made an IVA with creditors?"

droiderm

You wouldn't imagine Halifax would be asking for the discharge certificate?

kingstreet

No. They went from accepting discharged bankrupts one day, to declining them completely the next. I don't even remember being notified of the change.

Their application system didn't even ask about adverse credit. They put it simply, if you pass the credit score, you're in. When the change took place, a question appeared on their system and, in the case of IVA and bankruptcy, a positive answer resulted in a decline, without even carrying out a credit search.

Dave_Ham

My understanding is that they changed this with the introduction across the board of the 10/ Lloyds Hybrid system.

I did get a call given the amount of adverse business we do, although it was not much notice.

As Kingstreet rightly says, a naive broker will be thinking this is all good right up to the Solicitor final checks when all hell will break loose.

I have seen this exact thing happen just before Christmas, where a client was referred after exactly this happenning with Halifax.

Predictably it was a new build adviser. Mortgage got offered, bankruptcy check which was positive. Halifax informed and offer withdrawn.

Clearly the client relied upon the broker, but no-one got what they wanted.

Fingers crossed this is Nationwide, if not think really carefully about incurring cost OP