In 1994 we got into some difficulty with our mortgage with RBS in Scotland. To try to remedy the situation I took a job overseas and we rented out the property. However, the bank took possession. I have no idea what exactly happened as the shock, shame and humiliation of the episode coupled with the fact we were quite young at the time and we were overseas meant that we just let it happen.

Fast forward to 1997. We returned to the UK and I have a job with a large company in the midlands. Initially we were worried that our past would catch up with us. However, we have a normal financial relationship with various financial services companies. We have loans, credit cards and I’m a premier banking client of a major high street bank. The only thing we don’t have is a house of our own. We pay almost 3000 pounds per month to rent and have done so since 1997. A couple of weeks ago we decided to apply for a mortgage. We went through the process and have an agreement in principle. The lender has credit checked me. I checked the next day. There is no adverse credit info on either my Experian or Equifax files. I have been checking them regularly since 1998. Having now found a house we want to buy I need to decide whether or not to disclose our repossession. Obviously I should do this, but I’m scared our world will come crashing down around us. I have some questions, any answers are very welcome.

1. Will my NI number and tax reference number be used as a means of checking out our past? 2. If I disclose our repossession, what will happen. 3. Are there any other sources of information beyond the 2 main credit reference agencies that the lender will check?

Thanks Alex.

-- Alex (alex_alexander_alan@yahoo.co.uk), March 13, 2005

Answers

alex

I can imagine how you feel....We disclosed our repo to the halifax when we applied for a mortgage as we had settled the matter with a F & F. But we wanted to be up front. anyway the halifax told me that these things DONT show up after 4/5 years.

The difference with you is that you don;t know if there is any shortfall lying dormant somewhere and you just don;t want to open that can of worms.

My thoughts are that if there was a Possession Order it would have showed up in your credit checks. And there has to be a Possession Order first to allow the creditor to chase you for any shortfall. The chances are that the matter is now time barred as they have not taken any action to pursue it. could it be that there was no shortfall as the house had enough equity to pay everything off?

Just a thought but why don;t you get in touch with Land Registry to find out what the house sold for around the time you gave it up. they can check their archives. That way you might find out that it sold with a profit. This will cost you less than £10.

I dont know if it is possible to simply phone the local court and find out it there is any decree etc against you.

From what you say it sounds as though everything is ok but perhaps one of the more knowledgable people who post on the site might advise you better.

Wish I could help you more.

Good luck with everything

Moira

-- Moira (Anderston828@aol.com), March 13, 2005.