Mortgage application referred due to bankruptcy - I've never been bankruptrup

Melokane

I wonder if anyone has any advice or has been in this situation before.

We're going through a broker and our application was submitted to Nationwide. They have come back with a referred decision and have said they require a “written explanation for Adverse Credit/ Full explanation for a bankruptcy” in relation to my credit history.

I have two defaults that are 5 years old which I fully expected to been pulled up on. Any advice on how to cover these in the letter would be greatly appreciated! They are from a time when I went on a debt management plan as I thought it was the best option (spoiler alert... It wasn't). Not sure what to say or how to word it really.

My main concern is the bankruptcy. I've never been bankrupt. I check my three credit files every month and have done for at least the last year, it doesn't appear on any of them however when Nationwide have done their hard search today apparently one shows up. I have no financial associations other than my partner now that we have applied for a mortgage together and it isn't him.

I've checked the government bankruptcy and IVA website and my scummy ex boyfriend who I thought may be the culprit via a linked address isn't on there so I'm at a loss as to where they are getting this info from? Could it be a mistake. Can I just deny knowledge without it affecting their decision?

Thank you for any help!

Melokane

First Post and I messed up the title!:doh:

kingstreet

Bankruptcy doesn't show up on a normal credit search unless current.

Try here;-

https://www.insolvencydirect.bis.gov.uk/eiir/

but it may not show up if historic.

Solicitors carry out the standard bankruptcy search. It may be worth asking yours.

amnblog

What has your Broker said?

Thrugelmir

Melokane wrote: »

They are from a time when I went on a debt management plan as I thought it was the best option (spoiler alert... It wasn't).

Unclear what repayment schedule you agreed in relation to the debt owed. Was one of the creditors Nationwide?

Melokane

Thanks for coming back to me!

Kingstreet -

Bankruptcy doesn't show up on a normal credit search unless current.

I've searched the register for myself, my ex partner and anyone I have shared an address with none of us are on there. Surely if I had been made bankrupt at some point I would have been made aware of it? I've never been in any significant debt.

Amnblog -

What has your Broker said?

He has said that it may be linked to someone I shared an address with so just say that, but I'm worried that as I don't know who it is I can't explain it properly and they may not accept "I don't know anything about this" as a good enough explanation! I'm also not too sure what to say as a good enough reason for having defaults. "I went on a debt management plan as I couldn't get a consolidating loan" also doesn't seem great as a reason for defaults.

My broker seems confident in the application going through still. He won't charge us unless we are successful so he obviously wants us to pass and doesn't seem too concerned.

Melokane

Unclear what repayment schedule you agreed in relation to the debt owed. Was one of the creditors Nationwide?

From what I can remember it was to be paid off over about 5 years, the creditors were HSBC (career development loan), Capital One (credit card) and Natwest (overdraft). I did pay it off early and the two that are still on my file (settled defaults) are the Capital One and Natwest ones.

andyf1980

The way I read this is that they are asking for either:

A written explanation for adverse credit and or
A full explanation for bankruptcy.

I'm fairly sure that's the exact wording we were asked for. Your broker should be able to confirm that though. We didn't go with Nationwide in the end but they were a pain to deal with in terms of what they kept asking for.

AnotherJoe

I agree, I think it's clumsy wording and their catch all title for either adverse credit OR bankruptcy (or in worse cases, both). But I don't think it's implying they think you have been bankrupt. . Why not call them to confirm. Then, assuming that's the reason, give them an explanation for the adverse credit.

chanz4

I got told I was bankrupt when my solicitor did our searches, they had someone with a similar name at an address where never lived