Advice re 95% Mortgage and Bankruptcy

Dibbers1

Hi, I was wondering if anyone could help!

I was declared bankrupt in April 2008, had my house repossessed and finished paying the official receiver in August 2011.

I have been renting a house for the past 4 years with no arrears, and have managed to build up my credit score through my catalogue account (from an intial £500 credit to £3,400).

I am now in a position to rent another house with the option to buy in 6 months time, however with alot of money going to pay the rent in my current property I have very little savings. I may be able to scrape a 5% deposit together (and given the govts new stance on 95% mortgages), I wondered given my history (not being a 1st time buyer / bankruptcy etc.....) whether I could qualify for a 95% mortgage and what is the best way to go about looking into applying for a mortgage.

I look forward to any advice anyone has!

Many thanks.

GMS

99.99% no chance.

Bankruptcy big no no. Repo similar.

Senior_Paper_Monitor

I think GMS exaggerates your chances of 95% LTV (government guaranteed or otherwise) mortgage in the next few years.

Sorry - but those are the cold hard facts

If it helps any to get this into perspective, I've spent most of today trying to get a 90% mortgage for a client (albeit he has just bought a home for his parents - 70% LTV [against our advice] - but has no problem with affordability - and this is therefore technically a second home which reduces lender choices) because he has a couple of year old catalogue late payments !!

droiderm

I was in a similar position to yourself.
Except i declared bankruptcy in 2007.
I have a new buy 95 percent offer from nationwide, looking to complete next week.

I am nervous something is going to go wrong but they do know everything and took a long time to decide.

One piece of advice I can offer is wait until your 6 years are up.
Make sure your credit files are cleaned up , and make sure you keep your credit files bang in order.

You need to start saving. It's probably costing us 10 percent of the value of the house when you think of solicitors fees and stamp duty and everything else.

By being able to save , and it is enjoyable, you will probably find your attitude to money completely changes. I think this will demonstrate to lenders your a better risk.

There is little point in thinking too much about it until you have the money you you need.

Nationwide were one of the very few lenders who I had half a chance with when this process started nearly 6 months ago. This may change for the better or worse. But I do have a lot of respect for them, maybe think about getting your current account with them.

Good luck

tom1984

I was discharged in jan 2008 and have just completed on a 95% nationwide save to buy mortgage. They were fantastic and the underwriter saw no problem at all with a bankruptcy on record

opinions4u

It sounds like Nationwide are insane!

Senior_Paper_Monitor

The OPs situation is somewhat different in that he was only discharged in 2011. Also I suspect that the subsequent posters did not have repossessions involved.

The are three key factors in getting a mortgage through with a bankruptcy in the history:
1) Time since discharge (more so that defaults which link more to event - although in both case time to satisfy from event is important)
2) The circumstances involved in the bankruptcy
3) Active good offsetting credit activity since

In theory Nationwide have no minimum time since discharge - other lenders will have criteria like '4 years from discharge' but in practice it is not really possible to demonstrate good credit in much less than that.



.... and I should have mentioned LTV (the lower the better obviously, but demonstrating ability to save really helps in underwriter's view). We've only done a couple of ex-bankrupts at 90% in last two/three years and have never tried 95% to be honest.

droiderm

I think the op was actually discharged in 2009.
I think the 2011 date refers to his ipa ending.

Nationwide clearly don't have a black and white view of the world like most high street lenders and I respect them tremendously for that.

So much so , most of my financial products are with nationwide.

Oh , and I did have a repossession involved.

His chances , given time and correct behaviour might be a lot better than 99.99 percent but completely agree it's very difficult.

tom1984

opinions4u wrote: »

It sounds like Nationwide are insane!

Or maybe it sounds like they believe in giving people a second chance?

opinions4u

tom1984 wrote: »

Or maybe it sounds like they believe in giving people a second chance?

I'm fine with second chances. With strings attached.

But when most other lenders won't touch 95% with a barge pole for even the cleanest of credit histories the loans described on here are extraordinarily generous way to use their savers' deposits.

leveller2911

opinions4u wrote: »

I'm fine with second chances.





But when most other lenders won't touch 95% with a barge pole for even the
cleanest of credit histories the loans described on here are extraordinarily
generous way to use their savers' deposits.

I totally agree with you there, lending to ex bankrupts in itself is not a problem but 95% is a huge problem. I for one will be moving my house deposit away from NBS tomorrow. Their lending criteria is a joke if they are lending 95% to ex bankrupts with only a few years of proof that they are a good bet.

Blame Nu-Labour for letting people go pop with little effort or implications.