Advice re 95% Mortgage and Bankruptcy

Salander

tom1984 wrote: »

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

Hi Tom,
Your story about getting a 95% mortgage whilst bankrupt is inspirational to me. Could I ask a few questions? I am due to apply for a Save to Buy mortgage at the end of the week.
What was your credit like? I have credit with about 2k on a credit card, and apart from the bankruptcy my credit has always been good / excellent
I earn 45k, my wife earns 16k,
Our bankruptcy was due to a business failure and there was no repo involved.
Any advice would be appreciated

jacobtheamish

opinions4u wrote: »

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

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

[FONT=&quot]Perhaps I would agree with your comments should all Bankruptcies have been through financial recklessness by the petitioner.
Knowing that Bankruptcy is not typically so black and white, I understand why some lenders will look on each application on a case-by-case basis.[/FONT]

tom1984

Salander wrote: »

Hi Tom,
Your story about getting a 95% mortgage whilst bankrupt is inspirational to me. Could I ask a few questions? I am due to apply for a Save to Buy mortgage at the end of the week.
What was your credit like? I have credit with about 2k on a credit card, and apart from the bankruptcy my credit has always been good / excellent
I earn 45k, my wife earns 16k,
Our bankruptcy was due to a business failure and there was no repo involved.
Any advice would be appreciated

yeh of course, send me any questions you have on PM. if you look through my previous posts there's a lot of info. Your situation sounds promising to me

opinions4u

jacobtheamish wrote: »

[FONT=&quot]Perhaps I would agree with your comments should all Bankruptcies have been through financial recklessness by the petitioner.
Knowing that Bankruptcy is not typically so black and white, I understand why some lenders will look on each application on a case-by-case basis.[/FONT]

Perhaps you should re-read my posts in this thread.

1. I refer to statistical likelihood. This is the starting point for the vast majority of mortgage lending decisions made in the UK.

2. I refer to bankruptcy not necessarily being caused by financial recklessness.

3. I mention that, as a mortgage underwriter, I have approved mortgages for discharged bankrupts, thus explaining that a case by case view of things is reasonable.

4. I also emphasise that 95% loans are high risk in the current market so approving such high risk loans to the highest risk applicants seems, on the dace of it, reckless.

John1993_2

droiderm wrote: »

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.

Bitterness? I run a trading desk at an investment bank, and am offering my comments from the perspective of having spent decades assessing rate risk in finance.

I'm not sure really what I should be bitter about, I'm just surprised that anyone is so reckless so soon after 2008 that they'll take such a gamble on someone so iffy.

We've all seen the effect of bad lending previously, so to suggest that "they know what they are doing" makes no sense at all.

droiderm

John1993 wrote: »

Bitterness? I run a trading desk at an investment bank, and am offering my comments from the perspective of having spent decades assessing rate risk in finance.

I'm not sure really what I should be bitter about, I'm just surprised that anyone is so reckless so soon after 2008 that they'll take such a gamble on someone so iffy.

We've all seen the effect of bad lending previously, so to suggest that "they know what they are doing" makes no sense at all.

Dear John,
You seem like an intelligent guy, and this is why I can't understand some of your comments.
You work in some way in assessing risk, and I respect that, however I suggest in a completely different market.

From the outside looking in, I would expect risk assessment to be based on lots of statistics, algorithms and even plugging in numbers into those algorithms. In this instance, Nationwide are in full ownership of my facts, and their own facts.

For you to call it "iffy" when your in possession of very little facts, is what I don't understand.

Surely, from your experience, you must realise you must be in possession of those facts to raise a judgement?
I think your bitter about recently losing money to a bankrupt in your other thread.
I am genuinely sorry about that. But it does add a little bit of cynicism to your argument about Nationwide's judgement of risk.
I do appreciate that people are shocked, and in some ways appauled by their decisions in this instance.
But, at the end of the day, if you don't like it, there is nothing going to change that.

Maybe it would be better if people look at what hard work we have put into changing our lives around, from what is an awful experience. Don't think for one second it was straightforward.

jacobtheamish

opinions4u wrote: »

Perhaps you should re-read my posts in this thread.

Referring to Nationwide as insane?

If Nationwide are lending to borrowers who pass the affordability check, more than likely the multiples applied are lower than a non bankrupt. I really don't see the issue.

Newbuy, now that is insane

Salander

Does anybody know if it is likely that any of the banks offering the Help to Buy scheme, such as Nat West, will offer to me?

I am dischaged from bankruptcy for 5.5 years now, but other than that have a good history, stable job / life and there was no repo involved?

Thanks

jacobtheamish

Salander wrote: »

Does anybody know if it is likely that any of the banks offering the Help to Buy scheme, such as Nat West, will offer to me?

I am dischaged from bankruptcy for 5.5 years now, but other than that have a good history, stable job / life and there was no repo involved?

Thanks

Nationwide will definitely accept a mortgage application from someone 6 years after discharge, that was on the HTB equity loan scheme on new build. You would be best waiting until after 6 years have passed

BargainMad_3

There is a big difference in Help to Buy for new build (Equity loan) and Help to Buy (Mortgage Guarantee) launched this week.

HTB (Mortgage Guarantee) means you are servicing mortgage payments on a 95% mortgage from day one whereas HTB (Equity Loan) requires only a 75% servicing level.

Patently, in the earlier case in this thread, the Nationwide underwriters were not offering a 95% mortgage if it was a new build HTB (Equity Loan). The affordability aspect was somewhat different.

Of course there is nothing to stop discharged bankrupts from applying for the new HTB (Mortgage Guarantee) scheme. But the underwriting is going to he a whole lot tighter than the HTB (Equity Loan) scheme.

I really think they should have had different names altogether.