Bank are allowed to keep their own records - minimal 6 years after the accounts close, usually a question on the application form asking if a formal agreement with creditors has every been entered into in the last 6 years - you have answer truthfully to this ! its is illegal to answer falsely on these forms(its fraud). Banks also have a tendancy to share information - especially when they belong to the same group
Last edited by ginger3232 on Fri Mar 16, 2012 5:00 pm, edited 1 time in total.
If it's entered into a agreement in the last 6 years you can truthfully answer NO, if the start date was more than 6 years ago. What I believe they are asking is "Have you *ever* been bankrupt or entered into an arrangement with creditors" now that question is unfair as for the rest of your life you'd have to answer Yes which means for 20-25 years you are paying over the odds for a mortgage even if you could get one.
We're willing to wipe the slate clean, give you a fresh start. All that we're asking in return is your cooperation.
Agree with ginger - they can check, nothing to stop them.
I weould certainly answer truthfully - you never know if it is going to come back and bite you. I wouldn't want to take the risk.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Matrix - not always the case of increased mortgage cost post IVA - personally yes was answer on this with both Abbey then Bank of Ireland - however we did go through a mortgage broker, rather than the direct approach - no issues at all !
The question on the Chelsea Building Society mortgage application form is:
"Have you ever been bankrupt or entered into an agreement with your creditors or is there any such action or agreement pending?"
So technically you are stuck with disclosing your history for life - not something I can remember being told at the point I signed up to an IVA.
In reality , 2-3 years post IVA the disclosure shouldn't impact the the lending decision, but it's hard to believe you will ever get best of market rates if you answered it truthfully.
I think a lot of companies have only recently started asking these questions as more and more of us become insolvent.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
A lot of companies are now putting this in - they're getting wise to it.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
The question has always been the same, it has never changed on most mortgage application forms ie 'Have you *ever* been bankrupt or entered into an arrangement with creditors?'
You must answer this honestly, otherwise you are committing fraud.
The lenders will then make their own decision then if they are willing to still lend.
In my opinion, you will fail 90% of credit checks by answering 'yes' as the computer, 90% of the time makes the decision, not a person.
They key to getting a mortgage is finding the right broker who knows the 10% of lenders that will accept people who have been in this position and do not make their lending decision by a computer, but on the cases merritts.
Or
knowing the lenders that do not ask the question is the best way to getting a mortgage
This is where you need an expert.
Hope that helps
Ryan Radford
IVA Mortgage Expert
Zebra Money Centre
IVA Mortgage advice needed? Looking at Right to Buy and completed IVA still on credit files ?
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
