Nattionwide 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

GM1880

It's unlikely that you'll get a definitive answer regrettably, their criteria will change a fair bit depending on the balance of the mortgages they're currently underwriting and the state of the market.

They may well accept bankruptcies, but only if the applicant is particularly strong in other areas. It doesn't necessarily mean they'll accept any bankrupt applicant.

I'd speak to a broker who speciaiises in adverse credit mortgages.

AllieKat

The criteria means only that you might have a bit of a chance and aren't immediately disqualified. If you've been bankrupt, you'd need to have an extremely strong application for other reasons as stated above.

Think about it from the bank's perspective... Would you loan a large amount of money to someone who has avoided paying previous debts back?

Suzanne83

Yes I understand that. 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.

tenchy

AllieKat wrote: »

The criteria means only that you might have a bit of a chance and aren't immediately disqualified. If you've been bankrupt, you'd need to have an extremely strong application for other reasons as stated above.

Think about it from the bank's perspective... Would you loan a large amount of money to someone who has avoided paying previous debts back?

Possibly a poor choice of word there. We don't know the situation of the bankruptcy.

Suzanne83

Yes we didn't avoid paying debt, it was due to redundancy and poor health. Never had any problems with debt before or after. But I understand the point Alliekat was making.

Westminster

With exotic credit history like yours, an independent broker is worth their weight in gold.

Suzanne83

Exotic credit history? Seems a strange comment, but thanks anyway.

GM1880

I think it was just a pleasant way of saying 'not particularly good', I thought it was quite amusing. Put a smile on my face at any rate. Rather like 'flowery language'.

[Deleted User]

Your bankruptcy will be on your credit files for 6 years.

You!!!8217;ll need to use a broker rather than a mainstream lender

Wizardy18

You do not meet their lending criteria, simple as.

Just because they told you to apply again didn't mean they would or had to accept you, nor were they going too.
You applied by choice, they didn't do any searches that you weren't aware of or didn't agree too.

You were bankrupt, therefore you pose a high risk to almost if not all lenders, they said no, they don't have to accept you.

Move on, apply elsewhere.