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Nationwide mortgage declined despite fitting criteria

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

Comments

  • westv
    westv Posts: 6,493 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    The brokers on here will come along and ask why you didn't use a broker.
  • fewcloudy
    fewcloudy Posts: 617 Forumite
    Part of the Furniture 500 Posts Photogenic Name Dropper
    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.
    Feb 2008, 20year lifetime tracker with "Sproggit and Sylvester"... 0.14% + base for 2 years, then 0.99% + base for life of mortgage...base was 5.5% in 2008...but not for long. Credit to my mortgage broker
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    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
    Neutrinno Posts: 310 Forumite
    Seventh Anniversary 100 Posts Name Dropper Photogenic
    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.
    I am a Mortgage Broker.

    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • ACG
    ACG Posts: 24,690 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    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.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • Suzanne83
    Suzanne83 Posts: 53 Forumite
    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
    ACG Posts: 24,690 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    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.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • kingstreet
    kingstreet Posts: 39,316 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    So you were buying at undervalue.

    How much of your own money was going into the deposit?
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
  • Suzanne83
    Suzanne83 Posts: 53 Forumite
    King street - about 9% of mortgage amount requested.
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