Mortgage Application - Previous Poor Credit

vicki488

Hi All,

Does anyone know if lenders can tell if you have had poor credit longer than 6 years ago. I had an IVA in Jan 2006 which has long since dropped off my 3 credit files. My credit files are all in ship shape condition now. I have a deposit saved and am off to my bank with my partner on Saturday to apply for a mortgage. We arent wanting to borrow a ridiculous amount, only 2 times our salaries but I am worrying because I know they ask whether you have ever been made bankrupt but I dont know whether they ask about IVA's. People are saying that I must declare my past IVA (eventhough it is not on my credit files). Do I have to declare this for the rest of my life??? I know some word the dreaded question "in the last 6 years?" which means I would be ok. I have spoken to a couple of mortgage brokers that have assured me that they can get me a mortgage but I would rather go though my bank to avoid the broker fees. So I think what I really want to know is how do Santander word the "Have you ever been declared bankrupt or had an IVA?" question.

Thanks people :think:

sheilds

Hi Vicki,

I would advise going to an independent broker(they don't all charge fees up front-in some cases their fees are paid by whoever is supplying the mortgage.)

A good broker should be able to gauge who would accept your circumstances most favourably -regardless of whether or not they will ask the question about 6 years.

I speak from experience -turned down by the bank that I had banked with for years and a broker was able to get me an even better deal with no issues .

Best of luck

S.

samtoby

Surely you need to be honest that you have had an IVA otherwise thats fraud?

vicki488

Shields - Did your bank tell you straight away that they wouldn't consider you or did they submit the application only to come back saying no?

sheilds

Bank said initially no problem ,come in and talk to us.

We went through the full application and it came back as declined-staff member couldn't look me in the eye when she said we didn't meet their internal scoring system.We had 20% deposit and nothing adverse so we were devastated.
Still they did us a favour as broker got us much better deal after we had only been in his office for 20 mins.

Good luck.

vicki488

Shields - Who was the bank? I am with Santander and I think Santander and Abbey are the same now and I think that Abbey are one of the banks that will give mortgages to ex-IVAers. Personally I can see it ending with a big fat no, but we will see.

GMS

Abbey/Santander will declien anybody who has EVER been bankrupt or subject to an IVA.

Taken from their criteria;

If you answer yes to any of the following questions,
unfortunately we will decline the application.
16. Ever been bankrupt or subject to an IVA?

vicki488

Ah well broker it is then!