Bank account for easier mortgage application

exponential

Hi guys.

Just a quick question.....

Would my future application for a mortgage be helped by running a current account with the bank/BS that provides the mortgage?

I was given ED back in June 2010 and want to apply for a mortgage just after the BR falls off my credit files in a couple of years time hence the question.

Is there any benefit at all to having an account with my chosen mortgage provider or does it purely go off how you have managed your existing account/cards since discharge regardless of who it is with?

Any ideas guys?

Mike.

tigerfeet2006

Absolutely impossible to say. It can't hurt at all so I would.

exponential

tigerfeet2006 wrote: »

Absolutely impossible to say. It can't hurt at all so I would.

Yeah, im thinking of changing who I bank with for even the slightest possibility of it being advantagious.

I currently bank with Barclays (full current account) but I dont think they are very ex - BR friendly. Been with them a year now.

Would changing who I bank with harm my credit rating in any way??

2kadmin

Hi all,

Cant offer any concrete advice, but currently I hold a lloyds account and a Nationwide account for this very reason.. Been reluctant to close either in case I want to borrow more than the very strict income multipliers the Nationwide impose. Plus I am transferring 1k around to maximise interest on my deposit.

Personally just waiting for the land registry search for bankruptcy to fall off, got a successful DIP from the Halifax last year but just waiting until the solicitor search will be all clear in October and will re-apply.

Generally only some accounts applications trigger credit searches, I know my Nationwide save to buy and flex-direct account applications left no records on check my file..

2k

Eve1975

Does the solicitors search not bring up bankruptcy after a certain time?

The reason why I ask is that my bankruptcy is 6 years ago and I will be applying for a mortgage with Nationwide on Monday. I am going to answer truthfully any bankruptcy questions.

Are you not going to admit to bankruptcy?

2kadmin

Hi,

It does drop off yes, the period is five years.. (See info below)

To get a successful DIP from the Halifax I used a broker who asked if there was anything adverse on my credit file. There is not, so I answered truthfully. There are few lenders out there who don't ask and for those that do, often an enthusiastic employee will skip the question anyway, or ask it in a way where you can answer without lying..

3.2 Conducting bankruptcy searches
Immediately after a bankruptcy petition has been filed, the court must apply to the Land Charges Department to register the petition against the name of the respondent in the register of pending actions under section 5(1)(b) of the Land Charges Act 1972.

Immediately after the court has made a bankruptcy order, the Official Receiver must apply to register it against the name of the bankrupt in the register of writs and orders under section 6(1) of the Land Charges Act 1972.

Searches carried out at the Land Charges Department will be able to establish whether, within the previous five years, the beneficiary was subject to a bankruptcy order, unless a court order cancelling the registration has been made.

The search can be conducted online or by using Form K16. The current fee is £2 per search against each name.

tigerfeet2006

I was under the impression that their is another register that they could check to see if you have or are BR. Obviously there is also the London Gazette.

2kadmin

Hi Tiger,

To my knowledge, you only are only recorded on the insolvency service website, the land registry and of course the London Gazette which you correctly state will record a bankruptcy..

The lender will search the credit file, which lasts for six years, unless you are able to get yourself a new one, the £2 search from your solicitor is definitely the K16 search.

However really this is about the land registry covering the lender, in the respect of your currently being bankrupt or about to be made so, the K17 certificate issued (as a result of the K16 search) only covers the person searched for a number of weeks (cant remember how long) but I know solicitors have a nasty habit of conducting them after exchange.

Just found this from the land registry, that states only three years!
http://www.landregistryservices.com/samples/england_and_wales/eng_official.pdf

2k

Eve1975

Interesting.

I still will however answer honestly if asked 'Have you ever been bankrupt' on the mortgage form.

Like you say if asked if any adverse credit on my file, then I can honestly answer no.

exponential

So does anybody have any recomendations for me as far as choosing the right place to bank with?

I want to get this one right and give me and my family a fair chance of getting that first step on the mortgage ladder in the future.

My credit files have been cleaned and there are no longer any defaults/bad marks showing on any of them anymore (except the BR of course).
Been running two CC's without fault and experian and exquifax show a "good" credit rating so if I keep this up, it surely will stand me in good stead for the eventual mortgage application.

Its just which bank/bs will give me the greater chance of acceptance........?

tigerfeet2006

Honestly there are no wrong or right answers. Do much will depend on circumstances at the time, how much deposit you have, what the economy is like, whether you are wearing the right colour tie.