Just been turned down for the decision in principle

ValHaller

Farside wrote: »

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

I'm nothing to do with financial services, but reading the above, the reasons you are being rejected are plain as a pikestaff and your issues mainly relate to being in financial cloud cuckoo land.

If the house is worth £65,000 then why is the owner selling it to you for £45,000? No lender will ever value a property at more than it was bought for because they figure that the seller is not daft. So if your vendor could get £65,000 for it, they will reason that he would not sell it to you for £45,000 And I am thinking if he is offering this bargain worth £65,000 to you for £45,000 it is probably really worth £35,000

Next, over many areas of the country, you cannot get any property with its own entrance whatsoever for less than £100,000. So something at £45,000 is in an area where values are flaky. At times like this, there are certain areas where values can drop suddenly when mortgage funds become more easily available, because suddenly people find they can afford to buy somewhere slightly better. £45,000 is not too far above the smallest mortgage loans anyway - and when an area goes below that minimum, only bulldozers can improve things

So that is the house you want. What about you? Well done for moving on from bankruptcy. But as already pointed out, your 5% deposit on a £45,000 house - about £2,250 - is exactly countered by your loan. So you have borrowed your deposit.

Yes your loan might have raised your Experian so-called 'credit score'. But it has made the credit score which matters worse - the lender's credit score. Credit scoring for unsecured lending and for mortgages is almost certainly as different as chalk and cheese. And your Experian so-called 'credit score' is almost certainly biased towards unsecured lending.

I am wondering why your record is always getting you turned down for financial products. As Dave Ham suggests, get your credit reports from the 3 agencies and see if anything hangs over from your bankruptcy. Consider too whether you might have picked up fraud markers.

The other thing to look at is I wonder if you spend your spare time up and down the high street applying for financial products in the search of the next thing to improve your Experian so-called 'credit score'? If this is the case I suggest you just leave it alone. Too much quotation activity on your file will cause declines which will then make you look somewhere else for the same thing and add more markers to the file and become a self perpetuating problem.

Thrugelmir

Farside wrote: »

I didn't lose ANY lenders ANY money, Even the court said that when i was made bankrupt. for 10 years i paid minimum payments on all the CC. In the end i owed the same amount which i borrowed! Even though i paid 3 times more back then what i borrowed.

Was your choice to pay minimum balances. You were happy to take the card and spend the money though. Eventually defaulting on the debt.

That's precisely the reason why credit card interest rates are set so high. Due to the high level of defaults every year running into billions of pounds. Though credit card companies in the past were their own worst enemies. By allowing people to over extend themselves with unaffordable levels of debt.

Farside

sheilds wrote: »

Farside
Would you be able to speak to a broker who might be able to look at this in more detail for you?
I'm not saying they would have a solution but would be worth a try?

Yes Sheilds, I asked people for good broker recommendation in the question.

kingstreet

We can't recommend individual firms.

Presumably no friends and relatives have a recommendation?

Try https://www.unbiased.co.uk, switching off "sponsored ads only" so you get a full list for your area.

Farside

ValHaller wrote: »

I'm nothing to do with financial services, but reading the above, the reasons you are being rejected are plain as a pikestaff and your issues mainly relate to being in financial cloud cuckoo land.

If the house is worth £65,000 then why is the owner selling it to you for £45,000? No lender will ever value a property at more than it was bought for because they figure that the seller is not daft. So if your vendor could get £65,000 for it, they will reason that he would not sell it to you for £45,000 And I am thinking if he is offering this bargain worth £65,000 to you for £45,000 it is probably really worth £35,000

Next, over many areas of the country, you cannot get any property with its own entrance whatsoever for less than £100,000. So something at £45,000 is in an area where values are flaky. At times like this, there are certain areas where values can drop suddenly when mortgage funds become more easily available, because suddenly people find they can afford to buy somewhere slightly better. £45,000 is not too far above the smallest mortgage loans anyway - and when an area goes below that minimum, only bulldozers can improve things

So that is the house you want. What about you? Well done for moving on from bankruptcy. But as already pointed out, your 5% deposit on a £45,000 house - about £2,250 - is exactly countered by your loan. So you have borrowed your deposit.

Yes your loan might have raised your Experian so-called 'credit score'. But it has made the credit score which matters worse - the lender's credit score. Credit scoring for unsecured lending and for mortgages is almost certainly as different as chalk and cheese. And your Experian so-called 'credit score' is almost certainly biased towards unsecured lending.

I am wondering why your record is always getting you turned down for financial products. As Dave Ham suggests, get your credit reports from the 3 agencies and see if anything hangs over from your bankruptcy. Consider too whether you might have picked up fraud markers.

The other thing to look at is I wonder if you spend your spare time up and down the high street applying for financial products in the search of the next thing to improve your Experian so-called 'credit score'? If this is the case I suggest you just leave it alone. Too much quotation activity on your file will cause declines which will then make you look somewhere else for the same thing and add more markers to the file and become a self perpetuating problem.

The house is on the market for £65,000. Its been on the market for 2 years now for this price, There a lots of houses here for sale and only a very small % have sold, Nobody is buying, This is because people just can't afford to or can't simply can't get get on the ladder like me. You should read the thread more closely, i know the sellers son, The sellers son has told me his dad will sell for £45,000 for a quick sale, this is why i have applied for a mortgage of £45,000.

Your responce of "No lender will ever value a property at more than it was bought for" is silly. If that was the case then every house would still be for sale for the same original price it was bought for. House prices go up, values go up.

I have already checked my credit reports, I did this before i applied. There is nothing bad on them. If there was then i would have had it removed before appying. A mortgage loan is not a simple loan. I know this

I do not apply for lots of things, I have not applied for anything in over a year now,This is why my score and report is excellent. The only thing i have aplied for recently is the decision in principle. The loan i have is not new, It's half paid back now, 1 year left to pay then its gone. There are no fraud markers either i have checked. I have paid back my CC's too so not sure what else i can do hence why i'm here now.

Farside

kingstreet wrote: »

We can't recommend individual firms.

Presumably no friends and relatives have a recommendation?

Try www.unbiased.co.uk, switching off "sponsored ads only" so you get a full list for your area.

No nobody i know knows of any firms, Sadly, Thanks for the link i'll have a look.

I have decided now that i'll wait till i have a 20% deposit before a apply for another DIP.

Farside

Thrugelmir wrote: »

Was your choice to pay minimum balances. You were happy to take the card and spend the money though. Eventually defaulting on the debt.

That's precisely the reason why credit card interest rates are set so high. Due to the high level of defaults every year running into billions of pounds. Though credit card companies in the past were their own worst enemies. By allowing people to over extend themselves with unaffordable levels of debt.

No it wasn't my choice to pay the minimum balances, I had no choice, It got to the point were i could only afford to pay back the minimum payments every month, this was really why i had to go bankrupt all those years ago. It wasn't a sudden thing that i had to do by all means, It was over a long ten year period, then I got advice from CAB and finally went bankrupt. I'm not a young lad anymore who doesn't have a care in the world, I am now married with a family which is why i'm trying hard to get a house, I'm sick of paying someone elses mortgage (renting) when i should be paying for my own, But i just can't get on the ladder now.

Farside

GMS wrote: »

Sorry misread your post. You said 964 (999 best available). Default was mentioned in a reply. Apologies.

Point still stands. Score is meaningless. CRA score has no idea if you are in receipt of an income as the most obvious flaw. If a person had no income and a 999 score they would still not get a mortgage.

It's not that meaningless. But now i do realise that the CRA isn't the main thing to get a mortgage approved.

The bank who i took out the DIP with knows i have a job, I have a CC, Loan and current banking account all with them. So they know a lot about me and my history.

ValHaller

Farside wrote: »

.... Your responce of "No lender will ever value a property at more than it was bought for" is silly. If that was the case then every house would still be for sale for the same original price it was bought for. House prices go up, values go up.

The only silly bit of the response is how you have misunderstood it. When I say 'bought', I mean the price at which it is currently being bought. If you are buying for £45,000 I repeat, no lender's valuer will value it above £45,000 because they will believe that the seller will have done his best to get the highest value.

I have read the thread closely and the response is based on that reading. If the house has been on the market at £65,000 for 2 years it plainly is not worth £65,000. It is unlikely to be worth £50,000 otherwise the vendor would be expected to have had offers. As he is offering to you at £45,000 he is unlikely to have had offers above £50,000.

A home of your own is something to be sought after. It seems that your bankruptcy was based on consumer credit. And you seem to have sorted yourself out on that area. But you need a big change of mindset from the unsecured consumer credit orientated perspective you currently have if you are going to have your own property.

Farside

ValHaller wrote: »

The only silly bit of the response is how you have misunderstood it. When I say 'bought', I mean the price at which it is currently being bought. If you are buying for £45,000 I repeat, no lender's valuer will value it above £45,000 because they will believe that the seller will have done his best to get the highest value.

I have read the thread closely and the response is based on that reading. If the house has been on the market at £65,000 for 2 years it plainly is not worth £65,000. It is unlikely to be worth £50,000 otherwise the vendor would be expected to have had offers. As he is offering to you at £45,000 he is unlikely to have had offers above £50,000.

A home of your own is something to be sought after. It seems that your bankruptcy was based on consumer credit. And you seem to have sorted yourself out on that area. But you need a big change of mindset from the unsecured consumer credit orientated perspective you currently have if you are going to have your own property.

I believe the property is worth much more then £45,000, this is going off my personal exerience in the building trade and what the prices of the properties around here are selling for when they are done up. Personally i believe it is worth well over £55,000. I believe i could sell it for £60,000+ easily after buying it and doing it up with minimal work and money spending on it. Basicly the house looks rough on the outside and inner. But somebody who is interested in it could easily fix it up. I have time, Lot of it, approx 34 years until i retire, so in that time whilst i lived there with my family i could do it up well. And as i would not be renting, but paying mortgage payments, all this money would be going into the future of our family savings when i sell on. The fixing, painting, decorating, building work would be done by myself & wife, as and when we lived there. In the end i would sell and even if i got no big "profit" i would still get back what i paid in and then some. Therefore i would get back more then enough to live on in another country for the rest of my life (my wifes country) and also set up my son deposit for his own venture when he grows up.

So i'm not just looking at what this house is worth now. But the future. I just somehow need to get the mortgage lender on my side.