How long do defaults stay on an applicants credit file?
The credit record shows the default for six years from the date of the default notice, even if the arrears are paid off
Pending court hearings are not discoverable from references and bank statements. True/False?
True
Not on references and statements
- Pending court hearings
2.Action for maintenance/child support claims - Borrowings yet to be drawn
- Purely cash transactions, eg undeclared income or cash borrowings from the family
What should lenders always do when advising prospective Guarantors?
Seek independent legal advise.
Unlimited guarantees are not permitted. True/false?
True
What is meant by Joint borrower, sole proprietor
As a joint borrower they are jointly and severally liable for the mortgage, but they have no rights over the property.
Becoming joint owner would result in the SDLT surcharge on the purchase. True/false?
True
Insolvency occurs when:
a person’s liabilities exceed their assets; and they cannot meet their financial obligations when they fall due.
Where can CCJ’S be found?
Register of Judgments, Orders and Fines for England and Wales
How long do CCJ’S stay on the register?
They stay on the register for six years, unless they are paid in full within a month of the judgment.
A mortgage application form always requires details of CCJs or sheriff court judgments and it is a criminal offence to knowingly conceal them from a prospective lender. True/false?
True
A person with a CCJ cannot get a mortgage? True or False.
Although CCJs do not rule out the ability to get a mortgage, they have to be considered within the context of the application as a whole. A person who has been unable or unprepared to meet obligations in the past may be regarded as less reliable in the future. However, some lenders are prepared to consider ‘high risk’ clients with a poor track record and may charge higher rates of interest and impose onerous conditions for late payment to reflect the additional risk.
If the bankrupt is the sole owner of a property with at least £3,000 equity in it, the property will transfer to the trustee in bankruptcy, who becomes the legal owner and can sell it to settle debts True/Fa;se
False - It’s £1000 Equity
A bankruptcy restriction notice is entered at the Land Registry against the property. This shows that the bankrupt is no longer the legal owner of the property and cannot sell or deal with matters relating to the property; only the trustee can do so.
Quick Fact
A creditors’ meeting must be held for an IVA to be arranged, and creditors representing at least 50% of the debt amount must agree to the IVA True or False?
False - creditors representing at least 75% of the debt amount must agree to the IVA
Does having an IVA mean that you cant borrow?
We have already learned that, legally, there is nothing to prevent an individual with an existing IVA from borrowing, but lenders may be unwilling to consider an application - so in short no but it will be difficult and expensive.
With relation to non photographic documents which documents are able to be used?
- Entry on the electoral roll
- A recent utility bill or council tax bill in the customer’s name
- Bank account or credit card statements
What is the definition of financial exclusion?
Someone who cannot supply the necsscery documents but may be proven by an evidence of ID letter from someone in a position of responsibility (Solicitor, doctor, or minister of religion)
How long should ID be kept for?
evidence of identification must be retained until at least five years after the relationship with the customer has ended;
How long should transactions be kept for?
supporting evidence of transactions (originals or copies admissible in court proceedings) must be retained until at least five years after the transaction was executed.
A county court judgment will show on the Register of Judgments, Orders and Fines for England and Wales for six years from the date of the judgment:
unless the debt is paid in full within one month of the judgment. A county court judgment will show on the Register of Judgments, Orders and Fines for England and Wales for six years from the date of the judgment unless the debt is settled within a month of the judgment. If it is settled during the six-year period, it will remain on the register as ‘satisfied’.
