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

DemonIT

neverdespairgirl wrote: »

I don't know about HSBC, but with our new Lloyds mortgage, they say they can do checks and withdraw it up to the time the funds are drawn by the solicitor.

So wait....somebody can answer all of the banks questions honestly, get approved, hand over tens of thousands of pounds, give notice on the rented flat they live in and then the lender pull out after doing 'checks'???? Why weren't these checks done at point of offer? Nothing in my circumstances has changed and this information was available to them all along!

The whole things sounds unreasonable to the point where it cannot surely be legal?

I can understand if somebody lies at application then the bank can show they have grounds to withdraw fairly as offer was made on false information, but this is not the same as lenders relyin on credit scores and then changing their mind when they find out how the score was calculated!


I'll definitely post the results of this on Monday/Tuesday so save any other unfortunate soul from going through this.


Thanks alll who have taken the time to respond.

J

ruggedtoast

Theres an fsa enforced guideline of some sort called Treating Customers Fairly. Might be worth researching in advance.

Jenniefour

DemonIT wrote: »

So wait....somebody can answer all of the banks questions honestly, get approved, hand over tens of thousands of pounds, give notice on the rented flat they live in and then the lender pull out after doing 'checks'????

J

That's right - they can do it and are doing it. Mortgage lenders often randomly check mortgage offers that have been issued, it's an internal audit. They do it to make sure that the offers are compliant with FSA regulations, and probably their own lending criteria. Happened to my buyers last year - they had to resubmit all their bank accounts, pay slip and so on - and more.

And usually in the t and c's of mortgage offers it states something along the lines that the offer can be withdrawn under certain circumstances, which are spelled out and include new information coming to light.

I am amazed that a question wasn't asked about this at the application stage.

GMS

Taken from HSBC online application:

Before you apply for a mortgage with HSBC, please ensure you can answer yes to the following questions;

Have you had an offer accepted on a UK property? Or are remortgaging from another lender?*





Do you have a clean credit history?*





Are you over 18 and will the mortgage end before your planned retirement date?*

Clearly the OP could not answer yes to clean credit history. I would assume branch applications have the same question.

I really hope it goes through. If not there may be options. Passing credit score for HSBC would seeem to indicate a good history since the discharge.

I would recommend (not from a biased point of view) speaking to a broker asap. Time is against you on this if HSBC pull the offer.

Jojo1daffy

If she's had a clean history since the bankruptcy was satisfied, then yes she can. It doesn't give a time scale - it could be taken as 'Do you have a clean credit history NOW?'... need to know what the asterix is pointing to, do you know?

If that points to in the past 3 years then she can answer yes. The conversation probably went "I was bankrupt in 2007, satisfied in 2008". Bank person says "oh thats ok it means in the past 3 years and you have that".

m00m00

the * is simply saying it's a required field

Applying for a mortgage - Important Information


*indicates a required field

Jojo1daffy

I think she's ok then, she has a clean credit history - they don't define the period of history required, the OP has 3 years worth. They should have been more specific in the wording if 3 years clean credit history is not enough for them.

sammyjammy

Jojo1daffy wrote: »

I think she's ok then, she has a clean credit history - they don't define the period of history required, the OP has 3 years worth. They should have been more specific in the wording if 3 years clean credit history is not enough for them.

The question would relate to what is currently showing on her credit record. The bankruptcy would stay on there for 6 years so to answer Yes would be a lie in this case.

Jojo1daffy

I agree and I know - but they haven't been specific with time and I think lenders usually append 'within the past 3 years' - just asking 'do you have a clean credit history?' is open to interpretation. The OP said she told the advisor when she made the application so if he's said 'Oh it's ok, you have a clean 3 year history post-bankruptcy', then that is not her fault. She's been honest and answered the question - yes she has a clean credit history.

The previously posted section from a Nationwide app form asks this: Have you (or if self employed, your business) ever been bankrupt or insolvent
or made any arrangements with creditors? Yes No Yes No

The HSBC form does not.

Jojo1daffy

I've just been on the HSBC website and you can an AIP without it asking anything about your credit history. They take the mortgage details - amount required, term, type of mortgage, how much you earn, name and address but do not ask if you have CCJs or have been bankrupt or insolvent. Presumably if I clicked on submit it would do a search and say Yay or Nay.