Just been turned down for the decision in principle

droiderm

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.

Have you been accepted for any prime credit anywhere else ?

princeofpounds

I think nationwide just have odd credit scoring algorithms full stop.

I have perfect credit and always have done, and a track record on a good number of products. On the electoral roll etc.

Applied to nationwide for a current account. They refused after a credit check, the only explanation I got was that because I hadn't been at my address for more than a year.

These days, with AST tenancies being what they are, a young renter is lucky to have that kind of security of tenure!

OP, yes your deposit is low, and that will make banks ultra-cautious.

Mortgages are priced low, but that's because they are designed to give almost 100% security to the banks (the cost of non-performing loans, crises aside, are fractions of a percent of the total amount lent out a year).

A 5% deposit will barely cover the costs if they have to repossess and sell the property, let alone provide them with any security if house prices fall. So they are totally reliant on you to have less than a 1 in 100 chance of defaulting, and I would imagine that the repeat-default rate of former bankrupts is probably considerably higher than that.

But you should find that a bigger deposit will help massively.

I've used a telephone broker like London and Country in the past and been very happy with them - they are good enough to be recommended on this site - but I don't know how well they handle special cases like bankrupts. But good brokers will have an idea who can lend in your situation and who will never consider it, because they do get some idea of the statistics the banks are looking for.

Plus they will have a very large pool of lenders, most of whom will have no record of your bankruptcy if it's not on your files now. But even then a 5% deposit is hard to get a mortgage with.

As for an appeal, if it doesn't involve another credit search then you won't lose anything by doing it, but don't hold your breath.

droiderm

Most lenders will ask the question if he has ever been bankrupt and he will have to answer honestly .

Farside

GMS wrote: »

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.

Complain because their shoddy system declines me EVERYTIME! Even though my credit report and score is excellent, I have to complain every time that i make an application just so they go through the application in person, then they always accept the application. I'm sick of them crashing my score. thats what happens EVERY time they decline me.

GMS

Farside wrote: »

Complain because their shoddy system declines me EVERYTIME! Even though my credit report and score is excellent, I have to complain every time that i make an application just so they go through the application in person, then they always accept the application. I'm sick of them crashing my score. thats what happens EVERY time they decline me.

The fact that your score on credit agencies has hit 999 with a default shows exactly how useless the score is. Lenders use their own systems to score applicants. Waste of time paying for scores from CRA's.

You have managed to get what you applied for on appeal. Not a lot surprises me regarding complaints anymore but complaining for getting what was asked for is up there.

Farside

princeofpounds wrote: »

I think nationwide just have odd credit scoring algorithms full stop.

I have perfect credit and always have done, and a track record on a good number of products. On the electoral roll etc.

Applied to nationwide for a current account. They refused after a credit check, the only explanation I got was that because I hadn't been at my address for more than a year.

These days, with AST tenancies being what they are, a young renter is lucky to have that kind of security of tenure!

OP, yes your deposit is low, and that will make banks ultra-cautious.

Mortgages are priced low, but that's because they are designed to give almost 100% security to the banks (the cost of non-performing loans, crises aside, are fractions of a percent of the total amount lent out a year).

A 5% deposit will barely cover the costs if they have to repossess and sell the property, let alone provide them with any security if house prices fall. So they are totally reliant on you to have less than a 1 in 100 chance of defaulting, and I would imagine that the repeat-default rate of former bankrupts is probably considerably higher than that.

But you should find that a bigger deposit will help massively.

I've used a telephone broker like London and Country in the past and been very happy with them - they are good enough to be recommended on this site - but I don't know how well they handle special cases like bankrupts. But good brokers will have an idea who can lend in your situation and who will never consider it, because they do get some idea of the statistics the banks are looking for.

Plus they will have a very large pool of lenders, most of whom will have no record of your bankruptcy if it's not on your files now. But even then a 5% deposit is hard to get a mortgage with.

As for an appeal, if it doesn't involve another credit search then you won't lose anything by doing it, but don't hold your breath.

The house i want would not cost them money if they had to reposess because the owner has dropped the price way below the house value. The house is valued at £65,000 the owner said he'd sell to me for £45,000 as he wants shut of it quickly to help his costs were he lives (spain), that is a MASSIVE discount (i know the owners son really well, hence the help with discount), Nationwide are stupid if they think that they'd ever lose money on this, Even if they auctioned it they make a lot on it. I explained this in the mortgage application after i was declined too and the lady agreed with me that it was very low price.

I'll have to save the 20% deposit and give it another go in 3+ years time i reckon, Cheers

Thrugelmir

Farside wrote: »

Even though my credit report and score is excellent,

Your credit report score has no little bearing on the lenders decision.

The main points at issue are a 5% deposit combined with a 2.5 k loan. As for all intents and purposes part of the deposit has been borrowed.

Obtaining loans does not improve your credit score in any measurable way.

The way you conduct your personal financial affairs is far more important. Given you previously lost financial institutions a considerable sum of money. You can hardly complain when the same lenders are reluctant to lend you again. Unless you put up a significant deposit to provide security for the loan.

Farside

GMS wrote: »

The fact that your score on credit agencies has hit 999 with a default shows exactly how useless the score is. Lenders use their own systems to score applicants. Waste of time paying for scores from CRA's.

You have managed to get what you applied for on appeal. Not a lot surprises me regarding complaints anymore but complaining for getting what was asked for is up there.

When has it hit 999 with a default? I haven't known my score to ever hit 999, that the maximum score available. All my defaults and bankruptcy info were wiped from my report 6+ years ago. I've been discharged for 7.7 years.

Every lender i have spoken to says they use experian aswell as their own scoring system

Farside

droiderm wrote: »

Most lenders will ask the question if he has ever been bankrupt and he will have to answer honestly .

Yeah it won't look good will it if i said i haven't been bankrupt then they find it lol, Which they would, as the solicitors do a bankruptcy search when they do the surveying, so they'd find it anyway haha

Farside

droiderm wrote: »

Have you been accepted for any prime credit anywhere else ?

Hmm i don't know if its prime but i have a bank of scotland creditcard, A capital one CC (high interest rate so i never use it lol), And the nationwide which is the lowest interest rate of them all.