All lenders use a credit bureau the check the status of applicants for mortgages. A search of a bureau should reveal important information about the applicant, including current obligations, track record on previous ones and Country Court Judgment's (CCJ's).

Where debts have been incurred in the past, the bureau records will indicate whether these have been satisfied or not. In addition to this information being available to the lender, applicants can also request the credit file (subject to a maximum fee) held on themselves - this is a legal entitlement under the Data Protection Act 1984.

If Country Court Judgment's (CCJ's) appear on the credit search and have been satisfied subsequently, the lender will usually insist on seeing evidence of this. Documentation to this effect can usually be provided by the former creditor by way of receipt or other confirmation.

If the information on the applicant demonstrates a good history of servicing borrowings, the lender will naturally be more prepared to enter into a mortgage contract than if the applicant has a poor record.

Information obtained from credit bureau is only relevant to the comparatively recent past - records are usually deleted after six years.

The lender will take a much more selective attitude when considering loans to those who have been subject to insolvency proceedings in the past. A bankrupt has a legal obligation to disclose their bankruptcy to their solicitor. Whilst a bankruptcy order is still in force, a mortgage cannot be granted to the person who is subject to it. There is nothing to prevent a discharged bankrupt from entering into a mortgage, however, other than finding a lender prepared to lend.

Lenders take a serious view if misled deliberately by a mortgage applicant. If it is discovered that incorrect information has been given to support the application, it will be declined on principle. In very serious cases, the lender will notify the Police, who may decide to bring a prosecution for fraud.

If a client has had financial problems resulting in measures of the mentioned above being taken against them, it is obvious that this will cause problems when trying to place the mortgage.