Declaring bankruptcy when applying for a mortgage

Mrsmull2007

I've recently applied for a right to buy but was subject to a bankruptcy 11 years ago. I've been discharged for many years and it no longer shows on my credit profile, in fact my credit report it great with a score of 930 and no adverse credit for a long time. However I've just applied for a right to buy mortgage through the Nationwide and they said no! They said my bankruptcy is still showing, this isn't the case - can anyone help. I subscribe to CreditExpert so I know I'm right. If I don't declare my bankruptcy to another mortgage lender could they still find out?

DVardysShadow

Have you checked all 3 credit referencing agencies? May be NW also use an independent database of bankruptcies?

betmunch

If they ask about it you have to declare it, simple as that

ILW

As far as i know, all mortgage applications ask if you EVER been declared bankrupt.

WelshPaul

You have to declare a bankruptcy when or if asked. (I doubt you would ever get a mortgage now)

Although you may not see it on your credit report it is still there.

WelshPaul

Mrsmull2007 wrote: »

If I don't declare my bankruptcy to another mortgage lender could they still find out?

This would be a criminal offence, you would be obtaining money by deception and they stand a good chance of catching you out i strongly recommend you don't go down this route!

You could end up losing your home, left with a massive debt and a criminal record, you may end up doing time too.

Radiantsoul

Being made bankrupt 11 years ago ought not to preclude a mortgage, but you may need to speak to a mortgage broker. The building societies tended to be more risk adverse in the past.

DVardysShadow

WelshPaul wrote: »

This would be a criminal offence, you would be obtaining money by deception and they stand a good chance of catching you out i strongly recommend you don't go down this route!

You could end up losing your home, left with a massive debt and a criminal record, you may end up doing time too.

You need to be precise here. It is not an offence not to declare a bankruptcy if you are not asked. The deceit is to declare you never have been if this would be untrue.

WelshPaul wrote: »

(I doubt you would ever get a mortgage now)

Maybe mainstream lenders won't help. But if you take the problem to the Mortgages and Endowments section of the forums, you will probably find some useful advice.

RAS

Mrsmull2007 wrote: »

I've recently applied for a right to buy but was subject to a bankruptcy 11 years ago. I've been discharged for many years and it no longer shows on my credit profile, in fact my credit report it great with a score of 930 and no adverse credit for a long time. However I've just applied for a right to buy mortgage through the Nationwide and they said no! They said my bankruptcy is still showing, this isn't the case - can anyone help. I subscribe to CreditExpert so I know I'm right. If I don't declare my bankruptcy to another mortgage lender could they still find out?

Did you tell Nationwide that you hade been bankrupt previously? As far as I am aware all mortgage providers ask this question. The details of both bankruptcies and IVAs is on the Insolvency Register permanently, which is checked by mortgage providers. So it fallls of your credit record but remaians public knowledge, permanently. This should have been explained to you before your entered the BR arrangment.

If you failed to declare BR on your form to Nationwide, they will reject you outright for failure to declare relevent information. You need to check whether they have registered a CIFAS warning indicating potential fraud.

Mrsmull2007

Thanks for your replies. I DID declare my bankruptcy and NW said they use Experian. I have been using a mortgage broker and they are the ones that recommended NW mainly because they are known to lend to people who have been BR. I only want to borrow £31,200 - hardly a kings ransome - I've gotten a 35% discount with it being a right to buy. I earn almost £30k p/a and only have 1 small bank loan. It's crazy!
To be honest - I would never not declare it, I just wondered whether it is logged somewhere, and it's useful knowing that it is indeed logged for life.
Thanks

Mrsmull2007

DVardysShadow wrote: »

Have you checked all 3 credit referencing agencies? May be NW also use an independent database of bankruptcies?

NW only use Experian apparently - so I didn't check with all three, but having looked at other relplies, doesnt seem like I need to. Thanks