Got bad credit? Not HTB ISA for YOU!

Love2bone

Seems even the government are punishing people with bad credit history.

Thrugelmir

????????????

Love2bone

Celifein wrote: »

Bad credit shouldn't stop you getting a HTB ISA, any more than it would stop you getting any other ISA. Getting the ISA doesn't guarantee you'll get a mortgage, though, which would be affected by bad credit.

Unless you've read something about HTB ISAs requiring a credit check? I haven't seen this. Could you provide a link?

I have read it in U switch website, it says if you have bad credit you would not be able to use the htb isa.

Its says bad credit mortgages will not work in conjunction

"They won’t work in conjunction with any government scheme such as Help to Buy or Shared Ownership and usually don’t accept applications from people made bankrupt in the past six years – unless your credit file is now clear with no defaults showing."

They must be right or they wouldn't have said it.

You may get a htb isa, and you may even get the 2% interest on the money, but come the time to apply for a mortgage it seems your government top up would not come?

But saying that, i have applied for an isa with natwest (have bad credit and they probably know already) and haven't had anything come through yet. So might have been declined?

But i do have 4 accounts with them and a business account with lots of money in it.

But it wouldn't surprise me if uswitch are right.

Love2bone

can't link because i am new.

I do hope they are wrong because i'll need a bit of a boost from somewhere to buy.

It is a disgrace if these isas do not work for people with bad credit.

Thrugelmir

Love2bone wrote: »

It is a disgrace if these isas do not work for people with bad credit.

Who says they don't?

Chocolatefund

Never thought ISAs in general were linked to credit checks? Technically aren't you just moving money from one place to another?

Love2bone

Chocolatefund wrote: »

Never thought ISAs in general were linked to credit checks? Technically aren't you just moving money from one place to another?

It's not just an ISA, though.

Part of it is backed by the government, and according to uswitch, you will not be able to use it with a bad credit mortgage.

Love2bone

Thrugelmir wrote: »

Who says they don't?

I think you have problems with your eyes mr.

Thrugelmir

Love2bone wrote: »

It's not just an ISA, though.

Part of it is backed by the government, and according to uswitch, you will not be able to use it with a bad credit mortgage.

Mainstream lenders offering HTB ISA's don't offer adverse credit mortgages. Different market entirely. Lenders themselves opt to join in the scheme.

The Government provides an incentive. Has nothing to do with the application process. This remains as normal and follows the standard underwriting process. Which is based on commercial and regulatory factors.

Love2bone

Celifein wrote: »

According to the MSE guide on HTB ISAs, you don't need to take your mortgage out with the same bank you had your HTB ISA with. So, theoretically, you could use it with one of the adverse specialists, couldn't you?

Well it would be nice of the adverse specialists were signed up, the uswitch seems to think they wont be, because they have been pretty blunt with the 'it wont work'

So people with bad credit history looking to get a bad credit mortgage may not be able to use this. That is what i am getting to, and why i am right.

No good waiting for your credit to get better then buy :rotfl::rotfl: house prices will have gone up more than the htb incentive by then for most people.

Thrugelmir

Celifein wrote: »

According to the MSE guide on HTB ISAs, you don't need to take your mortgage out with the same bank you had your HTB ISA with. So, theoretically, you could use it with one of the adverse specialists, couldn't you?

Yes you could.