Bankruptcy still on records after 6 years?

pb73_2

Hi,

I went bankrupt 5 years ago. Am starting to think about applying for a mortgage next year (after 6 years - when supposedly bankruptcy disappears from the three credit record company files). I keep hearing that mortgage lenders have another list, which isn't made public, which tells them about bankruptcies long after the info has disappeared from the usual credit records. I first heard about this from a mortgage adviser who mentioned that bankruptcy never completely disappears from your record. I know the bankruptcy was officially published in a couple of newspapers so maybe the banks keep a permanent record of it? Does anybody know anything about this?

Debt_Free_Chick

Yes there is a register of bankrupts. BUT .... in addition .... most mortgage application forms specifically ask you if you've EVER been bankrupt. And, of course, you need to answer truthfully.

If your credit record over the past 5 years is good, then you may find that your bankruptcy has little effect on your mortgage application. It rather depends on the lender - some are more sympathetic than others, but the current climate for borrowing is not great.

It would be best if you go to a whole of market mortgage broker, particularly one with experience of your situation.

You almost certainly will get an offer - but perhaps not at the best rate available to someone who has never been bankrupt.

fermi

They are referring to the "permanent" Insolvency Register held by the Insolvency Service (in Birmingham I think).

While your details disappear from the online register and the Credit Reference Files, they always stay recorded on the permanent register.

It's normally only mortgage lenders (or similar) that search it.

amstel2

Hello

If after 6 years a BR is still on a file somewhere couldn't you just change your name by deed poll & move into rented accom for a while. Build up a good record in your new name & then apply for a mortgage.

Would this be legal.

hollydays

Dont credit applications ask if you have been known by any other name?

Debt_Free_Chick

amstel2 wrote: »

Hello

If after 6 years a BR is still on a file somewhere couldn't you just change your name by deed poll & move into rented accom for a while. Build up a good record in your new name & then apply for a mortgage.

Would this be legal.

Pretty sure that your credit record in your new name will simply follow on from the credit record you have in your old name.

fermi

Debt_Free_Chick wrote: »

Pretty sure that your credit record in your new name will simply follow on from the credit record you have in your old name.

It will. Your previous details including name will be linked to the new ones.

Plus, a mortgage application will ask if you "have ever been made bankrupt?" and "have you ever been known under another name?".