"Have you EVER been bankrupt"?

wildheart83

Horizons wrote: »

Thanks for the posts so far everyone. I just wanted to clarify a couple of things..



Where does the 'solicitor' come into assessment of suitability for a Mortage? The 'Underwriter' decides finally if you get the mortgage or not. Did I miss something?

In that statement you also imply that a Bankruptcy search is conducted on everyone? If that were the case and they have an easy automated way of gleaning the data from the Gazette then why even ask the question in the first place?

I'm not trying to shoot you down. Those are honest questions.



This is the first time I’ve ever seen a statement like that? A Bank or other similar institution searching your credit file is NOT able to see who your credit cards, bank accounts, mobile phone etc etc are held with? That surely is not the case. They see everything. Please show us a viable source that states otherwise!

Yep, this is quite correct - potential lenders can see balances and credit limits but not company details, unless it's with the same company in which case it would very much be an internal "credit score" they would look at.

What exactly do you think solicitors are there for, if not to ensure that legally, you are in a position to pay a mortgage? (amongst other things I might add.)
If it was me I'd be spending a wee bit more time reading up on the roles and responsibilities involved in obtaining a mortgage instead of considering ways in which to commit fraud. Sorry if it sounds harsh but it appears that there a fair few points requiring attention before you're ready to apply for a mortgage.

Horizons

wildheart83 wrote: »

Yep, this is quite correct - potential lenders can see balances and credit limits but not company details, unless it's with the same company in which case it would very much be an internal "credit score" they would look at.

As suspected that is complete and utter nonsense! I've phoned Experian and Equifax and ALL lenders searching our credit files see EXACTLY who our accounts and cards are held with. It is NOT anonymous numerical data held in our name! So the Underwriters (NOT SOLICITORS) would easily see you've been building credit after some sort of fallout.

Can the FRAUD police please chill out! :mad:

Hands up, my original post was longwinded and a bit blurred, however I was hypothesising about the scenarios whilst being fairly clear that I would quote "always want to be honest!"

I guess that I was originally attempting to make the rather depressing point that whilst we must build up our credit for the future its a catch 22situation. The final nail in the coffin is that absolutist question on a Mortgage Application... That really is, in my view, an unfair question and a throw back from medieval times. I simply don't think they should have a right to ask that question and I would campaign and lobby on those grounds.

If your credit file has been clean for 6 years and you have been impeccable in your behaviour then why? It's purely dogmatic. You've effectively 'done your time'

To hypothesis again. Why not ask; Have you ever had an IVA (to all intents and purposes the same severity)? Have you ever had a default? etc. Or even have you ever been declared bankrupt in the last 10 years? "Ever" serves NO practical purpose..

Most high street banks will automatically reject you over your ENTIRE lifetime regardless of your individual circumstances once you've answered yes to that question.. It's not objective or pragmatic in any way..... At least most building societies actually consider your case on a merit basis...

Best of luck peeps!

Amen!

Skittles26

Like you say, this is one of the consequences. The question doesn't categorically mean you will never be accepted for a mortgage, although it does reduce your chances/options. Owning a home isn't a right however, it is a luxury many people simply cannot afford.

I do wonder how much more bankruptcy can be watered down. In my opinion, there needs to be an end game deterrent to high debts/financial ruin/bankruptcy, the idea that every action has a consequence. I would be more worried if banks didn't consider ex bankrupts far higher risk candidates for massive loans, wouldn't you?

dojoman

This forum is to help/advise people on how to get through BR and how to rebuild your life afterwards. Just because you don`t like the answers does not make you right, what you think is fair and right does not matter one bit, in the cold light of day if you are EVER asked that question then you HAVE to answer yes. Being a discharged BR does not stop you from getting a mortgage, if you search the forum you will find threads where people have done just that and given advice on how to do it.

This excerpt is taken from,

http://www.justanswer.com/uk-law/7xs1u-will-bankruptcy-years-ago-show-conveyancing.html


Expert: Aston Lawyer replied 6 months ago.

Hi,

No- you will still have to declare it on the Mortgage application (as I have said, the Banks carry out different credit checks to us Solicitors, and you therefore need to be honest).


.

debt_doctor

Hi,


From my recent successful application to the Halifax for a mortgage, I found the following;


That due to me being discharged 6 years plus, they showed little interest in my former bankruptcy.


The actual BR question didn't come up but that may be because I gave full disclosure when asked "Have you ever had problems repaying credit?"


Halifax definitely want an Experian credit score of at least 'good', you will be rejected without.


I was told during interview that the actual credit cards (company names) (2) that I had were not visible to them on the credit report, so they did not know whether 'mainstream' or 'adverse'


I obtained the Halifax's best available rate.


DD

wildheart83

Horizons wrote: »

As suspected that is complete and utter nonsense! I've phoned Experian and Equifax and ALL lenders searching our credit files see EXACTLY who our accounts and cards are held with. It is NOT anonymous numerical data held in our name! So the Underwriters (NOT SOLICITORS) would easily see you've been building credit after some sort of fallout.

Can the FRAUD police please chill out! :mad:

Hey I was only a credit underwriter for years.... I must be wrong about what I saw on a daily basis... good luck pet, I think you're gonna need it!

jumperjohn

Hello Horizons.
I speak from personal experience and therefore being personal to me what I am about to say isn't conjecture but fact.

If after 6 years you have clean credit files showing well run established accounts and you have a decent deposit then you will be considered for any mortgage. If the question of 'have you ever been bankrupt' is asked and you answer truthfully, the application may well be refused but maybe not. If the question isn't asked then you may well be accepted.

I have previously been through a bankruptcy. During the time of this showing on my credit records I ran good accounts. Two years after the bankruptcy disapearing from my records I achieved a £200k mortgage with a high street lender at a low rate. I haven't been penalised because of my previous history. I wasn't asked specifically about my financial conduct some 8 years previously and it probably helped that the mortgage was with the bank I hold a current account with.

Don't listen to others, especially mortgage advisers who claim to know about your future, they don't. In the right set of circumstances you can get a mortgage without paying for past mistakes. Good accounts, good deposit and a little luck.

There is hope, don't listen to doom-mongers and those with no real experience, don't listen to those who have no idea and type tosh and don't feel that all hope is lost post bankruptcy, it really isn't. It's a new beginning and if the lesson is learned then it's all good.

Experian_company_representative

Horizons wrote: »

As suspected that is complete and utter nonsense! I've phoned Experian and Equifax and ALL lenders searching our credit files see EXACTLY who our accounts and cards are held with. It is NOT anonymous numerical data held in our name! So the Underwriters (NOT SOLICITORS) would easily see you've been building credit after some sort of fallout.

Can the FRAUD police please chill out! :mad:

Hi Horizons, just to clarify, the credit report you see is more comprehensive than the one a lender will see.
Only you see the actual names of your current and past lenders. Lenders can see the type of account, such as whether it is credit card or loan account, as well as the limit, but they won’t see the name of the lender.
Regards
Neil