Advice re 95% Mortgage and Bankruptcy

leveller2911

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?

No one is treating ex bankrupts as criminals but as you say you may be biased.

4.64 is a decent rate, I have an A1 credit history,no debts with a 20% deposit and the best I can get from NW is 4.2% and I've banked with them for over 20 years.

Believe it or not in the business world its not unusual for someone to go bankrupt a number of times so I don't see how someone who has gone bankrupt is less likely too go BR again especially given the change in the law a few years ago that made the process easier.

I will repeat what I said as you seem to have missed it.

I have no problem with ex bankrupts obtaining mortgages but lending 95% with little history of saving etc is risky and a rate of 4.64% is very very good.Its not the fact that they will lend to you its that they are willing to lend 95% at a rate of 4.64%.

Given that mortgage offers are based on risk and you have a 5% deposit and an ex bankrupt I fail to see how your low risk but Nationwide obviously do and they will be the ones lending you money.........I wish you luck.

Thrugelmir

opinions4u wrote: »

Lending at 95% to discharged bankrupts is a completely different game and way beyond high risk.

Save to Buy though allows people to prove that they've learnt their lesson. As it proves an individuals ability to manage their money. While giving the NW much needed retail deposits.

In many ways it's a return to pre boom lending. When mortgages were rationed. Or should I say limited. Saving with an institution was the way to obtain a mortgage. There's much to be said for the discipline of saving for a deposit.

With the credit data now available. Far easier to spot some one that's likely to re-offend.

leveller2911

Thrugelmir wrote: »

Save to Buy though allows people to prove that they've learnt their lesson. As
it proves an individuals ability to manage their money. While giving the NW
much needed retail deposits.

Erm correct me if I'm wrong but you only need to have Save to Buy account for 6 months before applying.Hardly time to prove a lesson learned or show history of saving.

QUOTE: "
Save to Buy mortgage

You must have held your Save to Buy savings account for at least 6 months before you can apply for a Save to Buy mortgage and have met the regular savings requirements below.

If you've held your account for less than 12 month:

• You must not have missed more than 3 monthly deposits of at least £50

opinions4u

Maybe I am biased but this treating ex bankrupts as criminals does get to me.

There's nothing criminal about bankruptcy. The circumstances that lead to it are varied and don't always mean financial recklessness was involved.

But bankruptcy is a big thing. Statistically a discharged bankrupt is massively more likely to have difficulties maintaining payments on new commitments than somebody who isn't.

Nationwide should know their business. It's possible that the two cases highlighted in this thread are a very rare exception. But, as previously stated, 95% mortgages are higher risk, even with the minor savings commitment Save To Buy brings. Making higher risk 95% mortgages available to applicants who are in the highest risk category of all is extraordinary.

I am sure nationwide know more about risk assessment than you or I

I have carried out dozens of risk assessment interviews for mortgages. I have underwritten hundreds of mortgage applications, a handful of which included issuing mortgage offers to discharged bankrupts. I have also seen the default statistics for different underwriting decisions across the book of a massive mortgage lender. I would hope Nationwide know their business better than me. I'm sure they do. But I'm not ignorant on the subject.

If clients with clean credit ratings are having trouble getting a 95 percent mortgage , maybe they are being sent to the wrong lenders

Feel free to tell me three lenders who offer straight forward 95% mortgage via mortgage brokers.

In fact, name three lenders who offer 95% mortgages on a national basis with no requirement to be an existing customer.

tom1984

5.49% on a 4 year deal for me.....

droiderm

leveller2911 wrote: »

No one is treating ex bankrupts as criminals but as you say you may be biased.

4.64 is a decent rate, I have an A1 credit history,no debts with a 20% deposit and the best I can get from NW is 4.2% and I've banked with them for over 20 years.

Believe it or not in the business world its not unusual for someone to go bankrupt a number of times so I don't see how someone who has gone bankrupt is less likely too go BR again especially given the change in the law a few years ago that made the process easier.

I will repeat what I said as you seem to have missed it.

I have no problem with ex bankrupts obtaining mortgages but lending 95% with little history of saving etc is risky and a rate of 4.64% is very very good.Its not the fact that they will lend to you its that they are willing to lend 95% at a rate of 4.64%.

Given that mortgage offers are based on risk and you have a 5% deposit and an ex bankrupt I fail to see how your low risk but Nationwide obviously do and they will be the ones lending you money.........I wish you luck.

Thank you. It might actually be 4.74.
I mentioned earlier , it is newbuy. The builder and lender put 8 percent in a pot I believe for 3 years. So in some respects, it's not strictly 95 percent, which may effect the rate.

droiderm

opinions4u wrote: »

There's nothing criminal about bankruptcy. The circumstances that lead to it are varied and don't always mean financial recklessness was involved.

But bankruptcy is a big thing. Statistically a discharged bankrupt is massively more likely to have difficulties maintaining payments on new commitments than somebody who isn't.

Nationwide should know their business. It's possible that the two cases highlighted in this thread are a very rare exception. But, as previously stated, 95% mortgages are higher risk, even with the minor savings commitment Save To Buy brings. Making higher risk 95% mortgages available to applicants who are in the highest risk category of all is extraordinary.

I have carried out dozens of risk assessment interviews for mortgages. I have underwritten hundreds of mortgage applications, a handful of which included issuing mortgage offers to discharged bankrupts. I have also seen the default statistics for different underwriting decisions across the book of a massive mortgage lender. I would hope Nationwide know their business better than me. I'm sure they do. But I'm not ignorant on the subject.

Feel free to tell me three lenders who offer straight forward 95% mortgage via mortgage brokers.

In fact, name three lenders who offer 95% mortgages on a national basis with no requirement to be an existing customer.

Are any ex bankrupts statistically less likely to not honour new commitments ?

I don't work in this industry , I respect the fact you do.
I could have named 3 lenders 5 moths ago , but i cant right now as I researched lots back then.

Maybe adding stipulations on lenders is the problem ?
You have seen anecdotal evidence in this thread , and one from a scheme.
So your question is probably not quite right anyway.

For me being a customer of nationwide helped me i believe , even though it's not required by the product.

kingstreet

leveller2911 wrote: »

Its not the fact that they will lend to you its that they are willing to lend 95% at a rate of 4.64%.

They may be a little more accommodating because this is on the NewBuy scheme, where the builder pays into an indemnity fund to cover repossessions.

Salander

Following on from Kingstreet- I would be very interested to know if the Save to Buy 5% deals have been achieved by discharged bankrupts when a new build is not involved!

I want to get a mortgage on this basis - I am likely to put in an application on Thursday... Fingers crossed.

John1993_2

tom1984 wrote: »

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

These decisions aren't based on "redempption" or on "second chances" or on "benefit of the doubt", they are based on risk assesment and affordability.

A company with a policy of giving people a "second chance" when the statistics suggest it's a losing deal is not going to be in that type of business for long.