*ANSWERED*: Bankruptcy Search AFTER EXCHANGE! - Can HSBC now pull my mortgage offer?

DemonIT

Hi,

I have an agreed mortgage offer with HSBC and have recently exchanged on the property I am buying. I am due to complete in 6 days time.

My solicitor sent me an email after performing the bankruptcy search with the land registry, asking me to confirm that the resulting entry which had been found was not me (she forwarded me a copy of the K18 certificate).

I quickly phoned her to explain that this WAS me, but that I have been discharged since April 2008 (made bankrupt in April 2007). She was shocked by this and asked if my lender was aware. I told her that I had never been directly asked, but assumed so as they had performed a credit check @ AIP stage and the underwriters would have further checked my credit file before issuing the offer!

I have completed all documentation and answered all of the lenders questions 100% truthfully at all times.

She advised me that I needed to quickly send her a copy of my discharge certificate. I was never issued one as I was discharged "automatically", so instead I got my local Official Receivers office to fax her confirmation of my discharge date.

She has sent this to the lender, along with the K18 certificate and now I have been waiting 2 days to hear what is going on.

My concern is that I have ordered a bathroom, flooring etc. and have given the vendor my 10% deposit and now I am worried that I am about to lose everything!

Can anybody give me any advice as to whether or not I am at risk of losing my mortgage as I haven't slept for 2 nights and am going to have to wait to at least early next week to learn my fate.

Thanks for any advice you can give.

J.

hillcats

Oouch ! This is not a good situation to be in at all.
I cant imagine ANY lender will be keen to let you borrow their money so soon after being bankrupt...

GMS

Did you declare the bankruptcy to the lender?

Jojo1daffy

It will be showing in the public information on the OP's credit file but if the lender relied on a score rather than looking at the actual file which is costly for them to do then they won't know other than asking at application stage. Having recently applied for a mortgage I was asked if I had any defaults, CCJs and had I ever been declared bankrupt - had i answered yes I don't think the application would've progressed.

DemonIT

GMS wrote: »

Did you declare the bankruptcy to the lender?

I told the very first guy I met at the bank as I didn't want to waste either of our time and I didn't want to rack up credit searches for lenders who wouldn't even consider me.

I was never asked directly about my credit history (CCJ's, defaults or bankruptcy), but would have disclosed if asked.

Surely the underwriters would have known from my credit file. I certainly never imagined this would be a surprise to them!

Surely as there is no change in my circumstances and I didn't provide any incorrect/false information they can't pull the offer???

DemonIT

Jojo1daffy wrote: »

It will be showing in the public information on the OP's credit file but if the lender relied on a score rather than looking at the actual file which is costly for them to do then they won't know other than asking at application stage. Having recently applied for a mortgage I was asked if I had any defaults, CCJs and had I ever been declared bankrupt - had i answered yes I don't think the application would've progressed.

But if they've made an offer based on my credit score then nothing has changed since the offer, so the offer should have to stand, no?

I phoned HSBC mortgage sales this evening as a new punter to ask if they had any lending criteria which forbids discharged bankrupts and they said no - it would be considered, subject to credit check.

Jojo1daffy

I agree, and the OP said she was honest and open in her application as well, so if she wasn't asked.....well then!

epsilondraconis

So is there no where on the HSBC mortgage application that asks the customer to indicate whether they have had any defaults, CCJs or been declared bankrupt?

Jojo1daffy

Well you would think so... Need the OP to advise on that. Think it might be a wait and see situation and some sleepless nights.......

Jojo1daffy

DemonIT wrote: »

I told the very first guy I met at the bank as I didn't want to waste either of our time and I didn't want to rack up credit searches for lenders who wouldn't even consider me.

I was never asked directly about my credit history (CCJ's, defaults or bankruptcy), but would have disclosed if asked.

Surely the underwriters would have known from my credit file. I certainly never imagined this would be a surprise to them!

Surely as there is no change in my circumstances and I didn't provide any incorrect/false information they can't pull the offer???

Apologies - missed this!

Jojo1daffy

I decided you're a she as well
I've not been wearing my glasses, was getting headaches which seemed preferable to not being able to see at the time....