Solicitor Bankruptcy Search

Need2Know_2

Our mortgage has been approved and the solicitors are now carrying out the searches prior to contract exchange in the next week or so. We have now been told that we need to pay £4 for a Bankruptcy search, we are now very concern that this will cause a problem as myself and my husband entered into a voluntary Bankruptcy in Nov 2007 discharged Nov 2008, can anyone shed any light on whether we should be concerned.

Our independant mortgage advisor didn't inform the bank that we had been Bankrupt in the past, but our credit score was fine, we are also putting in excess of 30% deposit down.

FraudBuster

Need2Know wrote: »

Our mortgage has been approved and the solicitors are now carrying out the searches prior to contract exchange in the next week or so. We have now been told that we need to pay £4 for a Bankruptcy search, we are now very concern that this will cause a problem as myself and my husband entered into a voluntary Bankruptcy in Nov 2007 discharged Nov 2008, can anyone shed any light on whether we should be concerned.

Our independant mortgage advisor didn't inform the bank that we had been Bankrupt in the past, but our credit score was fine, we are also putting in excess of 30% deposit down.

This should be an interesting thread.

peachyprice

That would depend on what your mortgage advisor put on the forms where they asked 'Have you ever been bankrupt'

Need2Know_2

It turns out he left it blank as he thought the credit score would be enough.

We just need to know if the solicitor search flags up pending bankruptcy's or drags up older ones that happened prior to application.

peachyprice

The search will go back at least 6 years, although I do believe for mortgage purposes they go back further, possibly 10 years.

Seems your mortgage advisor has dropped you in the doodoo.

silvercar

Bankruptcy stays on your credit record for 6 years, so expect it to show up on your credit record. As your bankruptcy has been discharged you are theoretically allowed to take a mortgage, whether a lender wants to give you one, and at what rate they are prepared to lend is a different question.

I would be questioning your mortgage broker as to why he didn't declare this at the outset.

Need2Know_2

We knew it was on our credit file , which is why we assumed it would come up as part of the bank credit search. It was only when going through the searches and through general conversation with the mortgage broker that this came up otherwise we would not have realised it was something we needed to be concerned about..

peachyprice

Surely you must have realised that if the question was on the form it needed answering, not just ignoring?

Need2Know_2

We didnt fill out the forms, it was all done over the phone..

nuttygirl1280

Hi

The bankruptcy searches are standard practice and will send you the bankruptcy search for you to certify that it does not relate to you, but as it will relate to you you need to advise your solicitor of this and they will probably ask you for your certificate of discharge to enable them to clarify that you are indeed discharged. They will then need to refer this to your lender for their approval but in my opinion as you are discharged. Unfortunatley tho this will hold up exchange and completion as they will need the response from your lender to confirm that they are happy to proceed on the basis that you are a discharged bankrupt. Hope this helps x

GDB2222

Would the lenders hold this against the OP that it wasn't declared up-front?