When a property is bought with the aid of a mortgage or other secured loan, the Lender will insist that a Bankruptcy Search is carried out against each of the purchaser(s) names in order to check that they are not bankrupt.
The bankruptcy search is carried out purely for the benefit of the lender. If it is the case that the purchaser is buying the property as a cash buyer, then there is no need for the conveyancing solicitor to carry out this search.
The results of the Bankruptcy Search will show any matters that may affect the mortgage advance. A clear search is required to proceed to completion. If a entry is found against the purchaser, then it is likely that the lender will withdraw the mortgage offer.
