Quick Question Re Credit reference, Bankruptcy and Mortgage

mabaker.lb

Hi All
Its really interesting reading all your comments, wish i had found this forum a few years ago.
Any way after 6 long years my credit file is free of my bankruptcy, luckily my husband owns his own house but we want to move and own a property jointly, we have equity in his home so deposit is not an issue.
I have been told that even if your bankruptcy is not showing in your credit file i probably wont get a mortgage because of it.. is this true?

kingstreet

Possibly.

It depends on the lender.

Your credit file is only one part of the equation.

Your solicitor also carries out a bankruptcy search around the time of exchange of contracts. If you have not disclosed your historic bankruptcy to your lender, you may find yourself declined at that time and your offer withdrawn, as your solicitor is bound to inform them of the search result.

If you use a broker, or pick a lender likely to accept you, disclose the bankruptcy, you have a good chance of being accepted, especially if you have a good deposit (25% or more) and it won't be a problem.

mabaker.lb

I have just looked at my account on checkmyfile.com and it is completely clear. Lets just hope our bank Lloyds is customer friendly.

GMS

Even if the bankruptcy doesn't show on a credit file it will show when the conveyancer does a bankruptcy search. Ensure you are up front with the lender so as to prevent any issues after offer.

If the lender accepts a discharged bankruptcy then no problem. If they don't and you don't declare it then the offer will be withdrawn during the legal process.