My experience help to buy with bad credit Halifax/Natwest got there in the end:-)

reapz69

Hi,

I today I got he keys for my new place I thought I would share my story for all those with bad credit.

I put in for a mortgage with halifax and got a dip however got declined at full application and at this point I thought it was game over.

I had 2 defaults one in 2007 and one in 2009 for 500 and 100 pounds, my borrowing was 0 with an overdraft of 600 pounds and a credit card with a limit of 1100.

(one default was with Tsb)

(Equifax rating 365 experian 971 Same info on both ??)


After being disapointed with the halifax we tried natwest but didnt hold out any hopes at all really.

Natwest search Equifax for mortgages we had 2 searches and a follow up search after putting in a full app nothing showing on experian what so ever.

They proceeded to ask for proof of deposit which was in the form of a gift a week later they did a survey and today we have got the keys!

What i find funny about the whole thing is the big difference between the 2 lenders halifax treating it as a 95% ltv and natwest 75% ltv.

I have now used experian to match me to credit cards it came back with credit builder card even though I have a high score with them, I thought id try good old natwest again and they have given me a CC and a current account with 1800 overdraft!


The moral of the story for me is all the credit ref so called scores are a complete waste of time and one lender may think you are not worth a risk where as another might think you could be there no1 customer.

So dont give up hope if I have done it with my defaults it can be done!

Also would like to thank people on this forum for advice etc.


Ps no credit search carried out before they released the funds for the completion

twenty20_2

Hi, thanks for your story. How must deposit did you have if you don't mind me asking?

Ryantymon

Different lenders use different scoring systems though.

Smaller lenders tend to use Equifax which can be a advtange in some cases.

I am intrigued to know why you say they treated it as 2 different LTV's? From my experiences lenders will want a applicant to meet a certain threshold at the respective LTV?

kingstreet

It's "Help To Buy - Equity Loan" and the lender may view the case as less risky because it can repossess and sell the property for 3/4 of its value and recover its debt.