2002 Bankrupt... Mortgage???

steve1178

Hi,
I was made bankrupt in Feb 2002 which was only for one year!

I have checked my credit rating and now it is all good with a good score. I have had several loans / Credit cards which have all been repaid and clear!

I have been accepted for a mortgage (subject to Valuation on the property).

I was just wondering on any checks that the Solicitors do will it show up my previous bankruptcy? As far as I can tell it is all done and dusted but im a bit worried :-(

Thanks again!

Senior_Paper_Monitor

Yes there are - and yes it can show up beyond 6 years.

If this happens and you already declared it as part of your application, no problem.

If this happens and you haven't declared it as part of your application, then the wrath of 'National Hunter' and the demonic hordes of Hades may well descend !

Your post infers that you haven't declared it during your 'decision in principal' process (if so, and you were asked the question, it is undoubtably mortgage fraud - but I will restrict my response to factual comment rather than any moralistic stance).

By far the easiest, most sensible and safest route is simply to select a lender who will accept ex bankrupts after whatever period, subject usually to more intense underwriting, and apply through them. Did you do this ?


Even if not, even if the mortgage lender does not accept ex bankrupts and even if the solcitor runs checks (level varies) you may still get your mortgage - but if you are just at 'decision in principal' + full application (as your indication of 'subject to valuation' indicates) the level of underwriting scrutiny applied at this stage or later varies by lender, so there really are a 'few more hurdles involved' yet.

danielanthony

They will check the insolvency register as when I got a mortgage a couple years back someone with the same name and DOB as me was registered bankrupt in Leeds (I've only ever been there once). I just had to confirm it wasn't me. However, I've just remortgaged with another provider and their solicitors have not asked this question again so I suppose it just depends.

You should have declared that you were made bankrupt in the past when applying for the mortgage if you were asked, if you were not asked then there should be no problems as obviously they don't see it as an issue.

kingstreet

Most solicitors do the bankruptcy search very late in the process. All can appear well and you can be expecting to exchange in a few days then "wham!" and it all goes pear-shaped after you've spent thousands.

My advice is to disclose to lender and solicitor right at the outset for the avoidance of nasty shocks.

Wh05apk

A bankruptcy is for life, many lenders now will not touch bankrupts, and if they find out later in the process, they will withdraw the application, and you will likely lose any fees you have paid.

Which lender have you gone with?

PsiDOC

The wording is clear and specific when questions are being asked on any forms for credit including a mortgage application.
If asked have you been made bankrupt in the last 6 years the answer is.. NO. This is usually the case, and the question I was asked when getting my mortgage 3 years ago.
However if asked have you ever been made bankrupt then obviously the answer is.. YES

Take it from someone who was made bankrupt in the 90's and had no problems with regards to bankruptcy whilst getting a mortgage 3 years ago.

Psi

Senior_Paper_Monitor

PsiDOC - Firstly you appear to be basing "this is usually the case" with regard mortgage forms on a sample of one, that sample being some three years ago when the world was very different.

I fill in an average of half a dozen mortgage applications or decisions in principle a week in the current market - the very great majority of applications state 'have you ever', even those who are willing to accept ex bankrupts. I have processed two ex bankruptcy applicants in the last 6 months, both of whom successfully obtained their mortgages as a result.

Take it from someone who actually handles these applications (at at least three, possibly four, of the responders on here do) such applications need to be placed very selectively and with full disclosure.

I admit the OP may get through this with his mortgage, whoever he has applied to - but the secret is to place mortgage applications where 1) it will almost certainly go through 2) if it doesn't, no-one (broker or client) lands in the sh one t !

kingstreet

The most interesting one is Halifax. There is no adverse credit question anywhere on a Halifax application form, so nowhere you can declare your bankruptcy.

The criteria simply reads;-

Only if discharged and subject to a credit score

which means if the system says yes, you're in (subject to the other checks).