Nottingham Building Society

droiderm

As part of their application form, they ask "In the last 7 years.. have you been bankrupt...". If I hadn't been, and I ticked no, I assume that even though they would find out I had been before 7 years (if that was the case), then they wouldn't take this into consideration, and treat me like a "normal" borrower?

Let_Us_See

Is there a question in there somewhere?

Otherwise, they are simply asking if you have been bankrupt within last 7 years? Is that too difficult to answer?

droiderm

Apologies for my grammar...
I was asking if I ticked no, would the application be underwritten as if I had never been declared bankrupt? Even though they would find out later anyway?

kingstreet

They will assume the answer you give is correct, until they receive information to the contrary.

The application will progress and be offered, then, when the solicitor does the bankruptcy search, it will come to light and the solicitor will refer it back to the lender.

The lender will then probably withdraw the offer and cancel the application.

droiderm

Sorry , maybe I am not coming across well.
Lets assume I declared bankrupt in 2005. I honestly answered "no" to the question. I assume, at the underwriting stage it will be treat as somebody who never declared bankrupt?

Are you saying they would make an offer, and withdraw it, even if it came to light later, even though I answered honestly?

Thrugelmir

droiderm wrote: »

Are you saying they would make an offer, and withdraw it, even if it came to light later, even though I answered honestly?

Lenders can decline whatever business they wish. If Nottingham BS have the funds to advance a hundred mortgages this month. Yet receive one hundred and twenty applications. They will thin down the applications to those that represent the best risk.

Let_Us_See

By referring to the 7 year question the lender is obviously indicating the question is part of their underwriting process. However, being outside the 7 year rule may allow you to achieve a mortgage, but it is also unlikely the lender will totally ignore a bankruptcy and will consider this along with other underwriting criteria.

Thrugelmir

Let_Us_See wrote: »

By referring to the 7 year question the lender is obviously indicating the question is part of their underwriting process. However, being outside the 7 year rule may allow you to achieve a mortgage, but it is also unlikely the lender will totally ignore a bankruptcy and will consider this along with other underwriting criteria.

I would say that "ever" would be the question. If bankruptcy was an issue.

Possibly their underwriting criteria is stringent enough to decline business where there are misdemeanours in the past 6 years in any event.

Providing there is a squeaky clean record for 7 years. Then the bankruptcy is ignored. Which seems fair.

kingstreet

droiderm wrote: »

Sorry , maybe I am not coming across well.
Lets assume I declared bankrupt in 2005. I honestly answered "no" to the question. I assume, at the underwriting stage it will be treat as somebody who never declared bankrupt?

Are you saying they would make an offer, and withdraw it, even if it came to light later, even though I answered honestly?

If you answer honestly that you have not been bankrupt in the last seven years and then the evidence, which comes later, after offer, agrees with that, you should have no problem.

If you say no, when the truth is yes, the offer can then be withdrawn as the lender is unlikely to be happy with both the bankruptcy and the non-disclosure.

You appear to be thinking the underwriting process ends with the issue of the offer and one that happens it's guaranteed. In my experience, upto completion, underwriting is an ongoing process as extra information is received from the applicant, surveyor, solicitor etc.

droiderm

You would imagine in this instance if bankruptcy beyond 7 years was an issue they would just ask upfront instead of waiting for the solicitor search ?

_Andy_

"Lets assume I declared bankrupt in 2005" - oh for gods sake, stop being so mysterious.

why don't you just state what your situation is instead of being so vague?