Advice re 95% Mortgage and Bankruptcy

tinkledom

droiderm wrote: »

It's 4.64.
Maybe I am biased but this treating ex bankrupts as criminals does get to me. I am sure nationwide know more about risk assessment than you or I, and I am sure they don't take their decisions lightly.

In my case , you may laugh , but i consider my self low risk.
Between the missus and I, after all bills , we have left in disposable income nearly three times the mortgage payment.

I budget strictly and we managed to save around 17 k in 12 months.
I change my budget spreadsheet every couple of months as prices for various things change. I know exactly how much we spend .

We have one 6 year old car , we have no debt. I have 7 k available on a credit card and a 1 k overdraft which I never use.

I am low risk , and I am so glad nationwide can see past the ex bankrupt badge.
I guess I am less likely to go bankrupt again than a lot of the population is to do it the first time.

Does it really make them so bad?

If clients with clean credit ratings are having trouble getting a 95 percent mortgage , maybe they are being sent to the wrong lenders , or are trying to get too large a mortgage. Maybe they need better advice?

This is where the government went wrong. They insisted that undischarged bankrupts be treated and spoken to as 'customers' by the Insolvency Service. Indeed the bankrupt was encouraged to fill out a 'satisfaction' card on the overall bankruptcy experience of all things.
Then the government issued instructions that nobody should treat bankrupts, undischarged or otherwise as different from anybody else.


So there we go, discharged bankrupts now see bankruptcy as nothing different as maybe filling out your tax return and moan if they are treated differently.


Geee being a discharged bankrupt generally means that they have 'knocked' somebody over debts they had but don't have anymore. There is no real stigma attached to it as it was years ago.


If you are in that financial position, why was it that you decided to go bankrupt in the first place instead of trying to pay everybody off in full?

leveller2911

tinkledom wrote: »

This is where the government went wrong. They insisted that undischarged bankrupts be treated and spoken to as 'customers' by the Insolvency Service. Indeed the bankrupt was encouraged to fill out a 'satisfaction' card on the overall bankruptcy experience of all things.
Then the government issued instructions that nobody should treat bankrupts, undischarged or otherwise as different from anybody else.


So there we go, discharged bankrupts now see bankruptcy as nothing different as maybe filling out your tax return and moan if they are treated differently.


Geee being a discharged bankrupt generally means that they have 'knocked' somebody over debts they had but don't have anymore. There is no real stigma attached to it as it was years ago.


If you are in that financial position, why was it that you decided to go bankrupt in the first place instead of trying to pay everybody off in full?

I'm afraid your correct and as someone who has been "shafted" twice by bankrupts I'm disgusted that lenders and especially Building Societies such as the Nationwide will lend 90% or more to people who have walked away from their debts. I'm really not sure the Nationwide do due diligence when assessing who they lend to.

Walking away from debt seems to be looked on by lenders with a shrug of their shoulders. Plenty of bankrupts will go on to "pop" a second or third time.

I don't have a problem with ex bankrupts accessing mortgages as long as they put up a decent deposit (15% minimum) that has a paper trail to show they have saved the money and not a "gifted deposit" and then they should pay a high rate because they are an increased risk which currently they are not..

When you look on the bankruptcy board and people post statements of affairs it can be a very intersting read with the vast majority having numerous maxed out credit cards,personal loans,car loans and credit cards with earnings that would never cover the minimum payments in a million years.


It wouldn't be so bad if the taxpayer didn't have to bale out the banks for their incompetent lending..........

No shame now in going bankrupt and seen as being a "client"..........sadly

tinkledom

leveller2911 wrote: »

I'm afraid your correct and as someone who has been "shafted" twice by bankrupts I'm disgusted that lenders and especially Building Societies such as the Nationwide will lend 90% or more to people who have walked away from their debts. I'm really not sure the Nationwide do due diligence when assessing who they lend to.

Walking away from debt seems to be looked on by lenders with a shrug of their shoulders. Plenty of bankrupts will go on to "pop" a second or third time.

I don't have a problem with ex bankrupts accessing mortgages as long as they put up a decent deposit (15% minimum) that has a paper trail to show they have saved the money and not a "gifted deposit" and then they should pay a high rate because they are an increased risk which currently they are not..

When you look on the bankruptcy board and people post statements of affairs it can be a very intersting read with the vast majority having numerous maxed out credit cards,personal loans,car loans and credit cards with earnings that would never cover the minimum payments in a million years.


It wouldn't be so bad if the taxpayer didn't have to bale out the banks for their incompetent lending..........

No shame now in going bankrupt and seen as being a "client"..........sadly

Personally I have known a good business go to the wall over somebody deciding to jump ship and not pay their debts off preferring bankruptcy instead.
I have also known individuals, trusting individuals, that have loaned money to friends to help them out only to be told that they can sing for their money as they decided to opt out of repaying it. One in particular came very close to his wife walking out on him over the unpaid debt - it was her money he loaned his friend.


I have yet to find a bankrupt that actually has a conscience over the fact of how his/her actions will impact on the innocent others.

RS2014

tinkledom wrote: »

I have yet to find a bankrupt that actually has a conscience over the fact of how his/her actions will impact on the innocent others.

I have been made bankrupt - I still have a conscience over it 7 years later and am deeply ashamed of everything that went on. I take full responsiblity but I must past comment on the fact that there is no way I should have been able to get my hands on the kind of money I did at such a young age, no history, and just starting full time employment - 18 years old.

When I came to sorting out my mess, after months of debt management programs which were a waste of time as the banks would not comply with at all - I was paying back less than what was being added on in interest and missed payments etc so I had no alternative but to apply for an IVA as my relentless communication and trying to come to a repayment agreement was a waste of time as thye made it impossible - The main creditor involved in the IVA refused it even though i told them that they would get basically nothing back from me if it was refused as I was offerring a huge amount as I was trying to do the right thing in paying back the money but literally I would not have been able to live each month by paying any more so the rest was hisotry. I kind of felt this creditor cut off their nose to spite their face as I did everything possible to try and sort it, anmd thye would have got basically the debt back anyway, it was just they had added 1000's on in charges late fees etc etc.

I was told in the county court by the judge that the amount I was going bankrupt for was very small in comparison to alot of people she saw daily (£15k)

I was compeltely irrespsonsible but so were the lenders.


I have since tried my best, I am on a low income have no chance of getting on the property ladder any time soon, but in the time since I was discharged I have had a few credit cards and paid them back in full each month to try and improve my credit rating for the future. I now have a decent current account with an overdraft (that I do not use), a credit card with a decent limit from a mainstream bank that is not considered a 'bad credit' or 'credit building' card. My credit files are clean. All I am focused on now is trying to save but I will never ever be able to save the amount of money required for a 20% + deposit (about 40k for a 1 bedroom flat around here (£200k) so I do not know where that leaves someone like me? I am just trying to save what little I can now but that is it.

Let me make it very clear though I have a conscience about everything that went on so feel that is it is unfair to say that, and I can personally say i tried to do everything I possibly could but the lenders made it impossible but I can honestly say i tired my best. Things are not always black and white.

Anyway i wish anyone that is an ex bankrupt all the best for their future geenerally and in trying to get on the property ladder.