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

DemonIT

Jojo1daffy wrote: »

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.

This is what happened with me, except the guy behind the desk was typing. No questions were asked as part of the AIP and this was the point when they did the search (the search shows in my CreditExpert account as a 'Mortgage Application', just below the bamcruptcy entry, marked with that date) so they would have had a copy of my file from then on.

Tbh it seems strange to me to ask a question of someone if you aren't going to accept their answer! Why ask what my credit history is if you are going to check with one or more agencies anyway? You wouldn't (as in my case), you would just ask the third parties.

Jojo1daffy

They won't have gotten an actual copy of your file, they may have asked you to send one in but they don't actually have access. It costs the bank and it's not cheap, whereas you can obtain it for free so it's cheaper for them to put you to the trouble of obtaining it, printing it off and sending it in. CCJs and Bankruptcy however are public information and can be checked by other means such as the Insolvency Agency. If your bankruptcy was current or very recent it surely would have impacted on your credit score at the time anyway!

GMS

Of course the banks have access to credit files. How else do they score an applicant?

The fact that the question 'Do you have a clean credit history?' does not specify a time would indicate at any time. Having a bankruptcy in the past would mean not clean.

If an 'adviser' has told the OP a bankruptcy would be ok then they need to be questioned.

Jojo1daffy

They don't have access to the actual file to see payment histories etc for the purpose of processing applications from Joe Bloggs. They generally have access to a credit score which is different to the actual file. I use Equifax and Experian everyday in my job so I'm aware of what it probably would cost a lender to individually search each applicant's credit file - it's expensive. If they need access to your actual credit file during the application process they will ask the applicant (who can obtain it for free) to send it in. (repeating myself but you appear have misread my last post).

The Nationwide application asks 'Have you EVER been made bankrupt etc?' The HSBC line of questioning does not.
No-one is implying that the advisor said the bankruptcy was OK but the period of time between the satisfaction of the bankruptcy and the mortgage application is sufficient to constitute a clean credit history.

GMS

How do the lenders know if any mortgage payments etc have been missed?

I have spoken to lenders on many occasions who have pointed out adverse credit on files. Having workd for a lender previously I know for a fact we had full credit reports on each applicant.

I have never known a lender to ask for a client to obtain a report and send it in.

Setting up an account with Experian or Equifax means pretty inexpensive searches. No way would a lender make a decision to lend without a credit search.

Jojo1daffy

I was asked to send mine in by the Co-op bank.
If mortgage payments etc are missed they are reflected in a poor credit score.
You worked for a lender previously.... when they had money to spend on credit reports? Well apparently now they don't. It's a credit score check for the yes or no, if it's a no and you appeal then you send in your credit report. Simple as.

Part of my current job is investigating mortgage fraud post-reposession. I look at mortgage applications everyday - never seen one full credit report in any application. Fake employment references, payslips and excuses why they aren't on the voters roll - Plenty!

FraudBuster

Experian signs global data integration deal with HSBC

Nottingham , 9 August 2010 – Experian®, the global information services company, today announced an enterprise deal with HSBC to help integrate the bank’s access to external data sources around the world.

National Hunter is associated with Experian and the OP may like to do a SAR request.

http://www.nhunter.co.uk/data.html

GMS

Credit score does not give a true reflection of what is contained within the file, hence the original post.

I have to disagree with you here. My own mortgage is with Britannia (part of Co-op) and they told me a credit check was performed.

Do you really think a lender would chance missing a CCJ or default for the sake of a few quid? An account with the credit agencies allows access to reports for very little money.

You mention in a previous thread about Co-op telling you your balance was too high. Credit score would not show a balance, only a search with data on it.

A statutory report can be purchased for £2 by an individual. Suspect companies with accounts would be paying less.

Jojo1daffy

She doesn't have to do all that with that company to do an SAR request... she can go directly to HSBC.. You spamming someone in a pickle?!

Jojo1daffy

When did you take out your mortgage?
A CCJ etc would impact the credit score - Lenders have their scoring set so tight just now, CCJs and defaults would be reflected in the scoring.
Disagree as much as you like - the CURRENT facts are they have tight scoring - if you still wish to proceed because you have good reason to appeal the decision you have to obtain your file yourself and send it in.
The Co-op didn't tell me my balance was too high - they said the Experian score they had used indicated that I had multiple accounts with high balances. I only have 1 Co-op credit card with a balance of £200 so I had to send in my credit file to prove that.
Please quote me correctly if you are going to use my previous posts against me.

You say yourself that credit scoring doesn't reflect what's on the file hence the original post - but if a full search had been done and the bankruptcy seen would the application have been approved in the first place..? The OP's score reflects their credit file and the good financial conduct since the bankruptcy 3 years ago hence the acceptance.