Yes, otherwise it is classed as mortgage fraud. Entries on your credit file will only stay on there for 6 years, but repossessions and bankruptcies show on what are known as 'Hunter'searches to stop people from doing this.(posted 8656 days ago)You could go through a mortgage application with no problems until the solicitors carry out their searches prior to completion and then be turned down, costing you a lot of money in wasted solicitors costs etc.
If there is an outstanding balance, a high street lender likes to see that it is repaid.
If you do get turned down by a high street lender (do apply but provide all relevant details)please do not hesitate to contact us as we are a mortgage broker who specialises in helping people who have had credit problems in the past.