Advice re 95% Mortgage and Bankruptcy

John1993_2

droiderm wrote: »

It's 4.64.
Maybe I am biased but this treating ex bankrupts as criminals does get to me.

Imagine you lent your son your car, and he crashed it. You get it repaired, lend it again, and he crashes it again.

Are you telling us that you'd not even think twice when he came back a third time to ask to borrow it?

It's the same with lending to bankrupts; there need be no condemnation for a prident lender to require more stringent lending criteria, in general. Lending 95% just looks wrong, especially of your wage is only threee times your mortgage payment.

leveller2911

Salander wrote: »

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.

I'm surprised they are even considering it on new builds. When people buy a newbuild they pay a premium so the minute they buy it its worth less that they paid for it.

tom1984

Salander wrote: »

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.

Yes i did. Bankrupt jan 07, discharged jan 08, mortgage offer issued august 2013. At 95% LTV on a 100 year old house...

droiderm

John1993 wrote: »

Imagine you lent your son your car, and he crashed it. You get it repaired, lend it again, and he crashes it again.

Are you telling us that you'd not even think twice when he came back a third time to ask to borrow it?

It's the same with lending to bankrupts; there need be no condemnation for a prident lender to require more stringent lending criteria, in general. Lending 95% just looks wrong, especially of your wage is only threee times your mortgage payment.

Nobody was talking about being bankrupt a second time. You took that leap of faith. Maybe your son should be banned for life after the first time?

If you want to question Nationwides underwriting, I suggest you take it up with them. You clearly know more than they do.

What I actually said was our DISPOSABLE INCOME after all bills was nearly three times the mortgage payment.

droiderm

John1993 wrote: »

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.

Risk assessment and affordability are exactly what Nationwide did base their decisions on.

Nobody implied they were giving people a second chance (or should we say third like your previous analogy?) just for the sake of it, the point is they are willing to consider ex br's unlike some other lenders.

Come back here in 10 years time, and I am sure Nationwide will still be in business.

I detect a slight bit of bitterness, if that's the case take it to another thread.

droiderm

droiderm wrote: »

I detect a slight bit of bitterness, if that's the case take it to another thread.

Ah I see why now.

https://forums.moneysavingexpert.com/discussion/4783402=

jacobtheamish

opinions4u wrote: »

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.

Have you got a link to these statistics?

Are these educated professional views or just your own opinions on Bankrupts?

leveller2911

droiderm wrote: »

Ah I see why now.





https://forums.moneysavingexpert.com/discussion/4783402=

Iv'e been stung by a bankrupt and didn't get a penny back.

That said I'm a realist and have moved on but I still believe that 95% loans to ex bankrupts is wrong purely down to not showing a decent history of saving and a 5% deposit can soon be wiped out by a downturn and trouble can be round the corner when you look for a new deal. Few lenders will be interested and the options will be limited.

One of the big mistakes in my opinion is going for a newbuild given the newbuild premium..I do wish you luck

opinions4u

jacobtheamish wrote: »

Have you got a link to these statistics?

No. I don't work for the firm any more and even if I did they would be commercially sensitive.

Are these educated professional views or just your own opinions on Bankrupts?

Professional view. Although my family has first hand experience of bankruptcy.

droiderm

Your entitled to your opinion.
I am fully aware of the new build premium.
This is why I am going to over pay my mortgage.
It's not so much of a concern now they are selling the new phase for 15 percent more.

Thanks for your concern and best wishes to you too.