Bankruptcy and mortgage

Keatster

Hi,

I've joined, after looking for answers in the forum, to ask a few questions related to my situation.

I'm 6 years and 3 months post bankruptcy. Credit file doesn't show BR or any any adverse credit.

Doing help to buy (authority to proceed approved yesterday amd 1.5 weeks into the 6 we have to exchange) and using nationwide or halifax. My IFA is telling me that nationwide will want to see a discharge certificate as she has to tick yes to their bankruptcy question as she has spoken to Nationwide and says the following...

Nationwide have said the question actually translates to 'have you ever been Bankrupt' with no timescale attached or 'entered into an IVA within past 6 years'. So it is not asking whether the Bankruptcy has been Discharged over 6 years.

she believes that halifax have the same definition when they ask the question.

I spoke to a nationwide broker myself who spoke with an underwriter and cane back to me indicating a 6 year old bankruptcy wouldn't be an issue.

My problem is that I was auto discharged from BR and a certificate isn't provided, it's going to take me 28 days to apply for one and that makes the timescales to tight.

My questions:
IS my broker misinformed, will nationwide and halifax want a discharge certificate?

If so, why, if it doesn't show on any of my credit files? And surely the solicitor BR search would show any problems?

Finally, would I be better just going direct to Nationwide, who I bank with, who have indicated the Bankruptcy won't be an issue, and who issued me with a DiP in early December, w hen I ticked NO to that BR question?

Or, should I get a new broker?

Hope someone can give me some good advice as I'm very frustrated right now, have a very stressed wife and we're both getting quite emotional. Argh!

Thanks
K

Keatster

Also, I should add, if I definitely need the Discharge certificate then I'll just have to apply and hope I can delay the exchange a short time...

kingstreet

If your bankruptcy was registered more than six years ago, we are instructed to answer the question "no" by Halifax and nothing will be requested, documentation-wise.

Even if it is not visible on your credit file, it is visible on the solicitor's insolvency search which is done later, so don't be tempted to omit it if considering other lenders.

ACG

The bankruptcy will come up at the legals stage regardless of who you apply to. It does sound like it fits criteria with both, but I am pretty sure any lender would want a copy of the discharge certificate.

I always ask clients to request a copy when I first speak to them as it can take time to arrive.

ACG

kingstreet wrote: »

If your bankruptcy was registered more than six years ago, we are instructed to answer the question "no" by Halifax and nothing will be requested, documentation-wise.

Even if it is not visible on your credit file, it is visible on the solicitor's insolvency search which is done later, so don't be tempted to omit it if considering other lenders.

Even if/when it gets picked up by the solicitors you still do not need to provide a copy?

kingstreet

We've never been asked for one by a solicitor, but every one is different, so it might be possible.

Keatster

Thanks all. What I am hearing is, apply for the certificate just in case and encourage broker to use Halifax?

Does it make a difference that Lloyd's were a creditor (for around £5000)?

Kingstreet, I thought the solicitor search only went back 5 years? I don't want to lie, but also do the want to delay the process any more than necessary.

Thanks
K

ACG

kingstreet wrote: »

We've never been asked for one by a solicitor, but every one is different, so it might be possible.

I have never used Halifax for an ex bankrupt so it is intereting to see that they are quite relaxed about it.

Keatster

ACG

Who would you use given my circa?

maximus2015

I applied for one when i was discharged, couldent find it as i filed it to well lol rang the insolvency service yesterday, spoke to a lovely lady and she emailed a copy over almost straight away

Hope you get it sorted

ACG

I cant name lenders, but you should have a few options - but I would say request the discharge certificate. You may need it, you may not but it is handy to have.