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

droiderm

Are you saying it's the case for every lender?
So that could be a stopper above 75% LTV for any lender?
Do these insurers have names/criteria?

kingstreet

No. Only lenders who indemnify the excess over 75%.

Indemnity insurance dropped out of fashion in the early 2000s when the likes of C&G started to self-insure. They charged the premium, but kept it and used the fund to cover any liabilities. Then they stopped charging, as did Nationwide, followed by the other high street lenders.

Since the credit crunch, a number of smaller societies in particular have re-introduced it as a way of offering higher LTVs without significant increase in the risk to themselves.

Worth bearing in mind, this insurance only protects the lender in the event of repossession resulting in the lender not recovering its full loss. The insurance pays the lender, but the insurer uses its subrogation rights to chase the borrower for any payment it made.

financialstress

OK, thanks again all!

Like I say, I'm expecting the "no" in the next week or 2 but I will be sure to update the post to let everyone know... I am a realist though and it all seems too easy at the moment.

I've been checking my credit file since Bankruptcy, for some reason (with all address' etc.) it's just never appeared on my experian or equifax... although the scores decreased considerably when the "credit facilities" that I had been paying were marked as settled/no longer live and it's taken a while to build up.

I don't have a problem getting credit (in fact... my bank keep trying to throw money at me - in the Branch they asked me if I wanted a credit card, so I thought "why not" it'll help improve my score by managing well - it came through with a £10k limit!) which just seems crazy really that I can obtain unsecured debt easily - but when a loan is fixed to an asset it's very difficult.

I have had problems when renting properies... (I generally have to pay 6 months in advance!) and I can see all of these searches took place on Call Credit where the BO is clearly stated and many defaults that should have been cleared up sooner when being managed by the OR I assume!

I have been completely honest with the Mortgage advisor... and the Solicitor - nothing to hide, it is what it is. I am confident the Mortgage advisor has been too, I've had to submit Discharge Certificate, Statement explaining the circumstances of my BO etc. for the underwriter to review (along with statements, payslips and the measurements of my inside leg) for him then to decline the app no doubt.

..................

Droiderm, don't disagree with your comment. If it's a no, I will continue to save! I thought £32k would be a good start - I'm trying to understand more at what point is an approval likely... if we're talking 25% I've got another £48k to go so will put off any hopes for 3 years until I can pull the cash together... but it's hard to plan for something that you have no idea what the criteria will be? I am sure you understand.

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anyway... either way - I will let you all know the outcome.

droiderm

I absolutely understand !
I am on smaller figures than yourself but will have a few more years of saving to hit 25 percent. We have the option of going in my wife's name which obviously reduces the affordability massively.

have you tried getting the 2 pound credit reports ? Yours do sound a bit strange

Honestly I do wish you the best of luck. Please do let us know how you get on. I will be following your path in the next month or so with equally negative expectations .

There are other lenders out there by the way if you get stuck.

can I ask if you had a repossession as part of your bankruptcy ?

Thrugelmir

financialstress wrote: »

I've been checking my credit file since Bankruptcy, for some reason (with all address' etc.) it's just never appeared on my experian or equifax...

Will be picked up from the Court register.

http://www.trustonline.org.uk/

financialstress

Hi Thrugelmir, thanks for the post...

I am not suggesting it won't be picked up... I always declare it - I'm not into wasting anyones time (especially my own).

I was just saying it doesn't appear on experian.

I don't fancy paying another supplier to find out informaiton I already know about my self though (experian, equifax and callcredit are my limit) - I'm fullly aware there are other registers which do have this information on; I'm not trying to hide from it - it just suprises me how different lenders do far fewer checks vs. others.



Hi Droiderm,

To answer your questions...

I absolutely understand !
I am on smaller figures than yourself but will have a few more years of saving to hit 25 percent. We have the option of going in my wife's name which obviously reduces the affordability massively.
Yes, similar situation. Due to the difficulty in getting a Mortgage after BO I am going to hold out to get the "long term" home - would rather wait for that then compromise on the house.

have you tried getting the 2 pound credit reports ? Yours do sound a bit strange
I am going to do this now, I had assumed that the information would be the same - but based on the comments above, I want to do this. Ultimately, I'm thinking as I was approved in Principal with 2 lenders after credit checking (that show on my Experian report) I am thinking there is nothing too ugly there.

Honestly I do wish you the best of luck. Please do let us know how you get on. I will be following your path in the next month or so with equally negative expectations .
I will do... best of luck to you too!

There are other lenders out there by the way if you get stuck.
OK, well if this comes back as a no I am going to wait 12 months. Not sure if you can private message me with other lenders details - a bit of knowledge is always good (for a control freak like me)

can I ask if you had a repossession as part of your bankruptcy ?
No, i've never owned a home. As I had no "assets" and just unsecured debt was the reason I chose bankruptcy at a difficult time - to be fair, regret it now... but I still believe it was right at the time.

droiderm

I know it's only been 6 days, including a weekend, any news?

Thrugelmir

financialstress wrote: »

Hi Thrugelmir, thanks for the post...

I am not suggesting it won't be picked up... I always declare it - I'm not into wasting anyones time (especially my own).

Not suggesting you would.

However what ever lender you use. After you submit an application. They will channel a request through their appointed provider i.e. Experian. Who will then update your credit profile accordingly.

Credit data is kept by different organisation. This is only updated as neccessary. As there'll be direct links between the databases.

droiderm

Oh Thrugle, I love you delving every so slightly into technical stuff.
I sense a little chink ;-)

sandy9876

I see this thread is over 2 months old with no outcome from the original poster.... However, just like to say I got accepted recently for a nationwide newbuy mortgage (discharged 3 years), it took them several weeks to get the approval in place along with numerous requests for additional info on bankruptcy /discharge etc, but seems we are ok.... did the original poster also get accepted I wonder?.... or is there something i am missing which can still go wrong? we've fully declared all of our bankruptcy/ circumstances etc and Nationwide specialist underwriting approved... interested to get your thoughts....

Mr Newbie!:)