Mortgage bankruptcy searches

martinjay_2

Hi there

Does anyone know the details of the searches that take place just before exchange on a property?

I was bankrupt 8 years ago and discharged a year later, I've been approved on a mortgage with a lender who supposedly is ok with this, though I'm never sure whether or not the salespeople are actually just dismissing my constant repetition of "now, you are making a note of my bankruptcy for the lender, aren't you?" :mad:

I just want to make sure they know and there are no surprises at the end. I've just spoken to my solicitor who carried out a quick search and said there are no entries for me, which is what he would expect for one discharged that long ago. He said that is the only search he would do for the lender just before exchange.

From what I can read here, I thought these closure of mortgage bankruptcy searches would show up any bankuptcy, not just pending or un-discharged ones?

If so, then I've done as much as I can haven't I, and there should hopefully be no last minute withdrawal?

Thanks!
MJ

Conrad

I'd be confident the sales person has NOT disc losed your past bankcruptcy - ask for a copy of the application to check. Always impossible to predict what will come out of a bankcruptcy search, and as you say it's often doen right at the last moment.

You have two choices;

Disclose it to the lender now - but run the risk of this causing a decline

OR

Fingers crossed and just hope the heck it doesn't cause a decline later

martinjay_2

Hmmmm.....bit of a nightmare

Not really sure what to do

I think it's something I have to take up with my solicitor I think, he said he will contact the underwriters very early on if I wanted to make them aware, but then he did a search and said there is nothing to tell them from that angle anyway.

I think you're right, the advisor at the bank is obviously not telling them, but I do have plenty of emails that show me continually mentioning it to him if that ever counts for anything

Any further advice gratefully received.....:(

SouthCoast

A recent thread on this subject:


https://forums.moneysavingexpert.com/discussion/3176456

broker

If you were discharged 8 years ago then I would just keep quiet whether they disclosed it or not (they probably didn't by the way) because it is generally only picked up in the last 6 years anyway.

If it was going to cause any issues it would have been when you submitted the full application and they would have come back to you asking for further information/documents etc.

Do you have your mortgage offer? If you do then nothing to worry about.

Hope this helps

martinjay_2

SouthCoast wrote: »

A recent thread on this subject:

Thanks for that

The difference there being how recent it was, so still on her credit report. From what my solicitor is saying, there is no record in his searches.

Has anyone heard of those end of deal searches highlighting bankruptcies older than 6 years?

broker wrote: »

Do you have your mortgage offer? If you do then nothing to worry about.

Nope, just agreement in principle at this stage. Advisor is saying he will send me the "paperwork" once the valuation is complete.

I'm wondering if that will include a pre-completed application for me to sign and return, minus an admission of my bankruptcy. Do all full mortgage applications have to be signed, or could he conceivably do the whole thing in my absence?

broker

Nope, just agreement in principle at this stage. Advisor is saying he will send me the "paperwork" once the valuation is complete.

I'm wondering if that will include a pre-completed application for me to sign and return, minus an admission of my bankruptcy. Do all full mortgage applications have to be signed, or could he conceivably do the whole thing in my absence?

It will be the [probably] pre-completed mortgage application with some areas you need to fill in and yes it will have the bankruptcy question on it and yes you will have to sign it but usually the adviser will then submit it online so there is nothing stopping him changing the bankruptcy question from yes to no even if you have signed it, it would be illegal for him to do so though although many still do things like that as far as I am aware.