Nationwide mortgage declined despite fitting criteria

Suzanne83

Hi, my husband and I applied for a mortgage with Nationwide in Feburary and were turned down due to a previous bankruptcy, notice of correction and problems with our credit files. We spent a lot of time cleaning up our credit files, ensuring there we no notices of correction etc. I rang Nationwide explaining the situation and they said to apply again. We applied again over the weekend and were declined straight away. The one and only reason being that we have been bankrupt.

We went bankrupt in 2013 and subsequently discharged 2014. Looking on Nationwides lending criteria, they will consider ex-bankrupts who are discharged. We now have 2 have 2 hard searches on our credit files. I am so disappointed that we were led to believe that we would be considered. If there were other issues, e.g. affordability, something else on our credit file, anything, I could understand it.

Does anyone have any insight or experience around this please.

Suzanne

westv

The brokers on here will come along and ask why you didn't use a broker.

fewcloudy

westv wrote: »

The brokers on here will come along and ask why you didn't use a broker.

Common sense you'd have thought, no? Experienced brokers might have been able to advise a different lender, or course of action, who knows.

Thrugelmir

Lending is a commercial decision. Little point in dwelling on why one particular lender doesn't want your business. Instead focus your efforts on searching the wider market for one that does. There's far more to each lenders individual criteria than gets published on line.

Neutrinno

With a bankruptcy still showing on your credit file, even though it was discharged, was always going to be a very slim chance of Nationwide accepting you, you may fit their criteria but the chances are very slim after they do their own credit score you etc.

You would be best approaching a broker who has expertise in ex-bankrupt mortgages to help get something in place for you.

ACG

I say this all the time on here...Fitting Criteria and getting accepted are very different things.

They will consider you and I have examples of people who have been discharged for 3 years who have been accepted by them. But you still need to pass their credit checks, affordability, the underwriters checks and so on.

At 3 years discharged you are meeting their minimum requirements. If that is combined with a high LTV, gifted deposit, short term in jobs etc these all add to the risk of the application. Whilst they may be happy to relax their criteria in certain areas if you are also pushing it in other areas, you may find it is just a little too rich for the underwriter.

It probably is worthwhile speaking to a broker if you have not already. You may find a broker can package your case to make it look as nice as possible for when it hits an underwriters desk.

Suzanne83

We have a deposit and would have used Nationwides genuine bargain price deal which would have taken the LTV down to 75%.Whether this is against us or not, I don't know!
Back to the drawing board. Thanks for your replies. Yes may consider using a broker, just that the one we used in February was not helpful at all.

ACG

Suzanne83 wrote: »

We have a deposit and would have used Nationwides genuine bargain price deal which would have taken the LTV down to 75%.Whether this is against us or not, I don't know!
Back to the drawing board. Thanks for your replies. Yes may consider using a broker, just that the one we used in February was not helpful at all.

At 75% there should be options. I am a little surprised Nationwide declined you, but I suppose we only have limited information to go off.

Like anything, there will be good and bad. Have a chat with them, see how you get on. It can be a stressful couple of months, so you need to get on and trust them.

kingstreet

So you were buying at undervalue.

How much of your own money was going into the deposit?

Suzanne83

King street - about 9% of mortgage amount requested.