declaring a dept relief order on a mortgage app?

thinktanc

Hi all im eager to understand whether or not i should disclose my dept relief order to the mortgage lender? what i mean is on alot of mortgage applications it asks ' have you ever been bankrupt or had an IVA? and ' are you discharged from bankrptcy?' now its does not say have you had a DRO. I know its still a form of insolvency but the fact is along with the question at hand is that ive not been bankrupt. Am i wrong? and would i just get declined because they check the insolvency register(even after six years when its ment to not exsist or shouldnt be recorderd anymore) i would very much like to know is where my DRO is recorded after the six years and where do the morgtgage lenders find out this info? thanks rant over





im discharge from my DRO and it will be on my file for sometime before it auto falls off.

debt_doctor

Hi,

You only need to answer questions that are asked!

Your DRO will remain, as you say, on your credit file for 6 years and will be on the insolvency service website until 3 months after the end of your moratorium period. The information is not held anywhere else.

DD

silvercar

You have to answer truthfully the questions asked.

So if you are not asked about a DRO, then you don't need to mention it. However, if you are asked have you ever....? then you have to answer truthfully even if the official record no longer exists. Not to do so would be fraud/ obtaining money by deception.

thinktanc

Thanks debt doc

Penelope_Penguin

I suspect that this is the mortgage lenders not catching up with current methods of insolvency I'd agree - answer the questions that have been asked, and if you have a DRO, you can honsetly answer "no" to questions about BR or IVA.

My optician still sends me a form every year to claim free eye tests for anyone in receipt of Family Credit - I've been an adviser for nearly a decade and can't remember advising on Family Credit HMRC tell me it was replaced in 1999

thinktanc

HI silvercar.... if i was asked about the DRO in any form of question in regards to applying for a mortgage i would say yes and would understand that it would be a negative impact on the app (obviously not gaurantee id get the mortgage) i would expect to pay a higher APR or even have to go to a broker and find a mortgage if asked about the DRO. However if not asked about the DRO i wouldnt say anything and would say now i havnt been bankrupt

debtinfo

Some forms ask if you have ever been made insolvent, which you would answer yes to,

Its a mute point at the moment as it will still be on your credit file for a few years yet,

I suspect that by the time it starts dropping of peoples credits files they will start adding it on to the questin list for applications

thinktanc

debtinfo wrote: »

Some forms ask if you have ever been made insolvent, which you would answer yes to,

Its a mute point at the moment as it will still be on your credit file for a few years yet,

I suspect that by the time it starts dropping of peoples credits files they will start adding it on to the questin list for applications

But how would the mortgage lender find out if somebody did lie and said no to any form of insolvency mortgage app question, when infact they should say yes? even if its bee 6 years 7 yrs or even 10 years? again how do they find out? this info must be stored somewhere???:mad:

silvercar

thinktanc wrote: »

But how would the mortgage lender find out if somebody did lie and said no to any form of insolvency mortgage app question, when infact they should say yes? even if its bee 6 years 7 yrs or even 10 years? again how do they find out? this info must be stored somewhere???:mad:

Its a big risk to lie. If you lie on a mortgage application you risk being convicted of obtaining money by deception. That risk stays with you for the 25 years you have the mortgage.

Lenders do exchange information, they also have databases that the public don't have access to. Search GAIN or CUE for examples of databases, though I don't know if either would hold bankrutpcy data per se. There are probably others.

FraudBuster

thinktanc wrote: »

But how would the mortgage lender find out if somebody did lie and said no to any form of insolvency mortgage app question, when infact they should say yes? even if its bee 6 years 7 yrs or even 10 years? again how do they find out? this info must be stored somewhere???:mad:

Check out what National Hunter do.


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

IF

Also BR/DRO information is available on the Insolvency Services Bankruptcy Database in Birmingham, which all licensed creditors (mortgage lenders, solicitors, police, etc) have access to.