Any experience with adverse credit history and obtaining a mortgage with Barclays

MsGeorge88

Hiya,

I am interested in hearing from anyone who has managed to obtain a Help to buy mortgage with Barclays who have had adverse credit in the past.

I would also like to hear from those who weren't successful, and what credit issues you've had.

Thank you in advance

GavL

I would assume this will depend on how adverse you mean?

I have just received an offer from Barclays with an old default (dropping off next month - sub £100) so MA wasn't concerned over it.

ACG

Not to be rude, but other peoples experiences does not mean a great deal.
You could have 2 almost identical cases on the face of it but get 2 very different outcomes - I have a customer who was declined with a broker, we sent the very same case to the very same lender and had it accepted.

You need to weigh the case up on its merits, does it fit criteria and pass affordability? If it does, that is a good start.
Are you pushing a lot of boundaries? Ie the maximum borrowing, the maximum LTV, the maximum amount of adverse? If so, that will probably not go in your favour.
Do you have a good history with the bank? If so, all the better.

I am not a fan of Barclays, in fact I do not know of any brokers who are but they can be good if you bank with them and have a long standing history I have found (although I have not used them for a good 18 months).

kingstreet

VGeorge wrote: »

Hiya,

I am interested in hearing from anyone who has managed to obtain a Help to buy mortgage with Barclays who have had adverse credit in the past.

I would also like to hear from those who weren't successful, and what credit issues you've had.

Thank you in advance

Have you read the criteria?

County Court Judgements (CCJs/defaults)

Adverse credit as detailed below must be declined:

Any unsatisfied CCJ
More than 1 satisfied CCJ and the latest is registered within the past 3 years
Satisfied CCJs totalling more than £200 and the latest is registered within the past 3 years
More than 3 satisfied defaults* and the latest is registered within the past 3 years
Satisfied defaults* totalling more than £200 and the latest is registered within the past 3 years
Any outstanding default, irrespective of amount
If it is identified that a limited company, in which an applicant has greater than 15% shareholding, has any outstanding judgements totaling more than £5,000
*Includes partially settled defaults which will be referred out to check whether full and final settlement has been made

Applications can be considered where the above is identified but only where documentary evidence of a settled dispute has been provided by the customer.

Over-indebtedness

Where the total unsecured bureau debt (credit cards, overdrafts and loans) is greater than or equal to the gross annual income used in the affordability assessment then the application will be declined. This includes where customers were looking to consolidate the borrowing on to the mortgage.

These standards only apply on drawn balances (unused credit limits are not included). This calculation is automatically applied by the system.

Bankruptcy/Debt Relief Orders/IVAs

Lending to a customer with a history of bankruptcy OR who has been the subject of a Debt Relief Order (DRO) or an Individual Voluntary Arrangement (IVA) can be considered provided any bankruptcy, DRO or IVA was registered more than 6 years ago from the date of submission of any mortgage application and no longer shows on the credit reference bureau information.

It is not acceptable to lend where we are aware that any applicant is currently bankrupt or subject to a DRO and/or IVA.

Payment arrears/missed payments

Any adverse credit identified, as detailed below, must be declined

Arrears of 2 or more months on any one account in the last 6 months
Arrears of 3 or more secured or unsecured in the last 2 years

Mortgage or rent arrears

If arrears of more than 1 month have occurred in the past 6 months, and/or 3 months arrears have occurred in the past 2 years, the case is outside lending policy and is to be declined. However, this decision could be changed if there is an acceptable 'technical' reason, or if evidence of a settled dispute is provided and verified by the lender.

[Deleted User]

ACG wrote: »

I am not a fan of Barclays, in fact I do not know of any brokers who are but they can be good if you bank with them and have a long standing history I have found (although I have not used them for a good 18 months).

Just found this quite funny. Never has such a big player been so universally despised by the entire industry they work in.
Their rates are always pretty good but my god you're rolling the dice on what experience you are going to have with underwriting

MsGeorge88

Thank you for your replies.

Yes I have read the criteria and I believe I pass it (joint app with 2 satisfied CCJs registers over 3 years ago). Affordability is not an issue. Do you think out adverse history is pushing boundaries with Barclays?

I understand I cannot judge my case based on others experiences using Barclays, but it will give me a feel on whether I should or shouldn't apply. Our other option is Precise.

[Deleted User]

Whether or not you will be accepted by Barclays or not is one thing but why do you think your next option is Precise?

3 year old CCJ's still puts you at a great many prime lenders and although Precise have some not too horrific tier1 rates, going straight to them if you get a barclays decline is really really strange .

Who told you this was your best path?

MsGeorge88

My MA. Precise seems to be the one the will surly accept us.

ACG

There are usually other lenders between Barclays and Precise as JMA says.

Your broker has access to more than us so I would not rule out what they are saying, but it sounds like your broker maybe wants to try it on the high street and if that fails go to plan C or D and skipping out making other applications elsewhere. That is not necessarily a bad thing as it avoids multiple applications/credit checks but it does not ensure you get the best deal - I suppose it depends on whether time or cost is more important. There is no right answer for that, it will differ for everyone.

pillowcase15

Did you get sorted with a mortgage? I am currently looking at Barclays but have some late payments (all over 3 years ago) 

csgohan4

if was a FTB , I wouldn't choose Barclays, purely out of their customer service and speed of service. My remortgage took 12 weeks for something simple.  

Will your vendor or sanity be able to withstand it?