Just been turned down for the decision in principle

Farside

Ok i'll start from the beginning... I have been bankrupt in the past but i have been discharged 7.7 years ago, I thought as it was such a long time ago then i'd have a good chance now to get a mortgage... Big mistake.

I am with nationwide building society and i heard from several sources online that they are the best for discharged bankruptees applying for mortgages, How wrong was they lol. I checked my experian credit score before doing the DIP and it is excellent, The score i 964 so not far from the very best score available (999).

I have a nationwide save to buy ISA which means i only need a 5% mortgage deposit, I saved this deposit then applied with them. I have no missed payments, no CCJD's, No bankruptcy on file. But still i was refused. The lady on the phone said it would probably be because even though the bankruptcy is not visible on the credit report it would still be in the background of all the banks systems i had dealing with in my past (which is near enough all of them!), This is for my entire life! !!!!!!! :mad:

Over the past 7.7 years i have run my accounts perfectly, i have never used my £1000 nationwide overdraft (well i did once this year for £15 but that was paid off within 24hours), i have paid off my nationwide creditcard, i am half way through paying off my small nationwide £2500 loan. I only took out the loan and CC to prove i could pay back on time and raise my score, which it has done.

The thing with nationwide is that whenever i apply for something i get turned down by the automatic system doing it, When i appeal the decision then the person who goes through it always accepts and says my credit file is excellent and i've run my accounts perfectly. I had this problem even with getting a debitcard with nationwide a few years back lol. :wall:

Do you think i should appeal the mortgage DIP? Or just go to a broker and get them to find me the best solution? If a broker then who is the best / who do you recommend?

Thanks

Farside

Do you think i'll have a better chance with Skipton Building Society? If so then should i wait or do it now? If i sould wait then for how long?

As i've been refused by nationwide would i have lowered my creditscore now ?

beecher2

I would think you need more than a 5% deposit due to your history. Probably have to wait until you have at least 20% deposit before trying again.

Farside

Ah ok, Looks like a long time to wait then for that type of deposit.

I've just paid experian to check my credit report again and its dropped a lot, Now its only "good" (938).

nonnatus

Hi,

I was discharged from BR 8 years ago and bank with Nationwide and Natwest. I approached NatWest who told me their rules have changed and they don't even CONSIDER anyone previously bankrupt anymore. They advised me to go to a Broker.

Found a local, whole of market broker who I think is great. I have a 50% cash deposit, so it makes a HUGE difference. I have got 3 mortgage offers now to choose from.

Don't give up! Just approach it differently.

Crashandburn

beecher2 wrote: »

I would think you need more than a 5% deposit due to your history. Probably have to wait until you have at least 20% deposit before trying again.

This.

As soon as you are ticking the box to say you're an ex-bankrupt, then the system will start looking for a large deposit when it comes to credit score. With some high street lenders, as soon as you tick the box to say adverse, it will decline straight away.

This is what would have happened on the Nationwide app and why they have looked at previous requests manually.

Not what you want to hear, but going in with a large deposit is the only way - possibly even as much as 25% so as not be referred to the lenders re-assurers.

Dave_Ham

Firstly, my biggest issue is that you still have trouble achieving a bank account.

I think the starting point is your Experian, Equifax and Call Credit reports and see if there is a residual hangover from the Bankruptcy.

Also worth noting who formed part of the bankruptcy, as this information will hang around longer on their internal systems and those lenders part of their group.

With a 5% deposit, you unfortunately have absolutely no hope.

All the best

Farside

Dave_Ham wrote: »

Firstly, my biggest issue is that you still have trouble achieving a bank account.

I think the starting point is your Experian, Equifax and Call Credit reports and see if there is a residual hangover from the Bankruptcy.

Also worth noting who formed part of the bankruptcy, as this information will hang around longer on their internal systems and those lenders part of their group.

With a 5% deposit, you unfortunately have absolutely no hope.

All the best

I've always been on top of my credit reports since my bankruptcy ended, I sort out any wrong info as soon as i see it, my bankruptcy was deleted a month after i was discharged, But my defaults and other bads things weren't, it took me approx 1 year to get them all wiped off because i had to write to each lender and then it can take over a month for them to fix, Most were a pain in the !!! and i had to write a fair few letters every month to get them to change the bad info. But my credit report is now excellent, nothing bad on it whatsoever.

I know what you are saying regarding the lenders systems holding the bad credit info... but i cannot change that now, According to nationwide it will stay on all the systems for life. Which is harsh, I must have had an account with every uk bank lol, Be it a creditcard or loan over the past 10 years.

Can anyone recommend a good broker then? I'll save them to my favorites and then contact them when i can get the 20% deposit

Farside

I also made a complaint to nationwide online because i'm always getting declined on every application and then accepted when i appeal and an actual person goes through my application manually, They are going to start a case for me on monday.

GMS

Farside wrote: »

I also made a complaint to nationwide online because i'm always getting declined on every application and then accepted when i appeal and an actual person goes through my application manually, They are going to start a case for me on monday.

Complain for what? They are doing you a favour by overriding their own internal scoring.

Having the Save to Buy means you can APPLY for the mortgage. No guarantee of acceptance for anybody.

Hopefully you will get a good result.

droiderm

My bankruptcy fell off my credit file at the start of this month , and my last default yesterday .
I was accepted online by nationwide for a full bank account with out issue today
They also offered me a credit card as part of that application which I accepted .

It's been a long time coming. I will be applying for a new buy mortgage with them very soon. I don't expect to be accepted but nothing to lose by trying.

It finally feels good I can pass a non sub prime credit score .