Must I declare previous repossession when remortgaging?

childed

Hi, like many others i had to hand back the keys to my house in the early '90s, incurring a CCJ from the Cheshire Building Society.

I have since reached an agreement with the Cheshire and made a payment in full and final settlement, although not the full amount owed on the original repossession. The CCJ has been marked as settled and no longer appears on my credit history as it was over 6 years ago.

I have held a mortgage with the Abbey for over 5 years and have a clean credit history now with no other outstanding debts of any sort but have just come to the end of a deal and reverted back to SVR so am looking to remortgage.

My wife aorks for the HBOS so we should be able to get a good deal but my question is; do I need to declare that i have previously had a property repossessed, and if so would that affect my chances of getting a mortgage?

It seems unfair that difficulties I experienced so long ago should affect my credit rating now, but am reluctant to lie in case they find out about the previous repossesion..

Any advice would be gratefully received as i have a meeting with a mortgage adviser this week and am worried about how much I should tell him......

AndyWallace

It shouldn't affect any application now.

AndyWallace

AndyWallace wrote: »

It shouldn't affect any application now.

I'd still declare it, yes, if asked.

Andy.

childed

Thanks for the quik response guys, it's just that last time I went to remortgage (with my owne bank, the woolwich) They turned me down flat after going through the credit checks and filling out all the paperwork when the advisor asked if i had ever had a house repossessed as he was filling out the final details - one quick call to the underwriters and he told me they wouldn't give a mortgage to anyone who had ever had a repossession no matter what ther current credit history looked like.
Ayone out there know what the Halifaxs' stand on this is?

AndyWallace

"Refer to Lender"

HelpWhereIcan

A reposession from the early 90s will not show on your credit file although there is a slim chance that it may show on the CML register or the Hunter system (depending on when the repossession was and I don't have the time to check when info started being shared to the extent it is now, but IIRC it was approx 1997).

This means that it is likely that the only way a lender would find out about it is if you tell them.

As AndyWallace says, my advice has to be that you need to tell them if asked.

However, I have just checked the Halifax online application system that we get (which AFAIK is similar to the branch one) and it does not ask the question. You may find that your wife will be able to get a bit of off the record advice from the branch's mortgage adviser.

silvercar

Be aware that getting a staff mortgage means you will be taxed on the "benefit" of any interest rate you get below 6.25%.

dunstonh

If you dont declare it then you face your wife being sacked for fraud and the lender asking for their money back if they find out.

If there is a question that requires that answer then answer it truthfully. It wont make any difference now as long as you are not stretching yourself.

The_Eternal_Optimist_2

There have been times when clients of mine have declared past reposessions on a mrtgage application form and put an explanatory note on the back - dates, reasons, what happened etc. I think its important to be honest - there are systems in place that can check these things anyway. Before you jump into a staff mortgage I'd get someone to work out the true costs including tax as opposed to a conventional mortgage. I used to have one in 1997 when I worked for Abbey, I wasn't a mortgage broker then and nobody explained it to me, when I left Abbey I remember being worse off!

childed

thank for the advice; I was not intending to lie, but hoping that the question wouldn't be asked and wondering if the bank would have any way of telling other than from my credit history!

I wasn't aware of any tax implication though - can anyone fill me in on what that might mean in real terms?

surely it's no different to a discount rate from any high street bank so why should it affect my tax?

MarcusB

childed wrote: »

surely it's no different to a discount rate from any high street bank so why should it affect my tax?

As an employee it would be more than likely classed as a "perk" or benefit, and would then liable to tax. Therefore the reduction in any net salary due to the increase in tax, would have to be added to any lower payment on the mortgage. this means there may be other products on the market that may be cheaper. Best bet is to ask your employer of any tax implication on taking advantage of an employee rate.