Is this Mortgage fraud or OK please ?

[isthereaway]

StbexH & I are Divorcing. In Scotland.
The 1st part of the Divorce is the financial part. Signed last Nov.
The house has been legally transferred into my name.
The mortgage remains in joint names. This is unusual but there were good reasons & it's all been done via the Mortgage Co & the lawyers. It's binding.
The actual rubber stamping of Divorce is about to go through (4 wks from now).

ExH has just told me he is buying a flat. I was surprised (he's retired on a small pension). So I asked him a bit about it & it turns out he's said he is 'a gurantor' on the ex marital property. He isn't- he is a joint mortgage holder still.
I couldn't get out of him if he'd been confused (the legal papers were clear) or if he has just managed to put it that way to the new mortgage provider.
He said 'it wont be a problem for you anyway'. Is he correct?
I dont want the provider of our joint mortgage rescinding it if he has been untruthful applying for his new mortgage?

It would be mortgage fraud on his part not yours so I would say you are safe.

Has his mortgage yet to be approved? Or is their underwriting to still process? An underwriter would definitely pick up on this, if he is still showing on your mortgage on his credit profile, this in itself shows he has a mortgage in his name and not just a guarantor.

Either way, to my knowledge a guarantor becomes liable for the debt if the person they guarantorred does not pay so I would have thought that would affect an underwriters decision too.

@nuttyroche2 thanks for replying x
the thing is - it is OUR mortgage not mine.
This new one is the one that is only his.

@Wheelz46 I don't know. He says the mortgage broker has approved it?
'they didn't pick up on it'. Maybe he has lied more than I think?
We are now financially separated anyway. I need to get the Divorce through quicksmart to rubber stamp that. (wierd 2 part system in Scotland)

As long as, if he gets called on it, it doesnt affect the joint mortgage ???

I am so glad we are nearly Divorced. He was doing all this whilst our eldest teenager was in intensive care. Bloody hell! I feel quite shocked.

@isthereaway If the mortgage broker is separate to the mortgage lender, I am pretty certain it will be picked up when the underwriters get it.

A mortgage broker generally justs takes the information given by the client and advises if it would be accepted in principal based on the information at that time, to my knowledge, they don't complete a credit check.

I still think your mortgage will be safe, I hope the divorce goes through quickly for you.

So sorry he is putting you through this and I hope your teen is okay.

If he is pulled on it they might register a fraud loading on him which is done through CIFAS so it will affect him massively. It will only register against him and not you.

This should not impact your mortgage and in all honesty your mortgage provider is unlikely to be made aware due to GDPR.

Is he still going to be paying towards your mortgage? If not surely he needs to come off it.

@helpfulperson No He's paid nothing since he walked out 3 years ago.
But it can't be put into my sole name as I am a Carer for our two Dc so don't earn enough. The Mortgage Co & lawywers are quite happy. I'm not thrilled he's choosing to sign up for another mortgage when he doens't contribute to this one. It is interest only & will be due full repayment in 5 years so I will have to sell up.
What the kids & I will do then (they are unlikely to ever live independantly) I don't know. exH says there will be room for them in his new flat. He does absolutely NO 1:1 with either of them atm & 1 won't even speak to him. Selfish idiot.

Hmmm. I asked & he says the underwriters have cleared it & it's going ahead.
He's taking on a 70K mortgage over 20 years on pension & benefits.
I think it's crazy but as long as it doesnt affect me...I can't stop him anyway.

I would have thought the most basic credit search would show that he's in a joint mortgage - no matter what he's calling it.

For as long as you have a joint mortgage you will remain financially tied. Is he paying any of the mortgage?

How are you financially separated if you still have a mortgage together?

Mortgage broker here but in England if that makes any difference.

If the lender has approved his mortgage then you have to assume they've done their checks and are happy. Even if he "lied" on the mortgage application they would have checked all the available credit files & (hopefully) seen he still has an outstanding mortgage in his name. How he's got a mortgage based on his retirement income & benefits is another matter. Although £70k could only need income of £15kpa. Also its probably a special retirement mortgage & they have different rules - and I assume he's over 55 seeing as he is drawing a pension.

Also, it will not affect your mortgage in anyway, although I am surprised your lender would accept sole owner, joint tenants. Many many dont.

My lender is happy for the Title to be put in my sole name as long as we both remain on the mortgage. He doesn't contribute at all but it means that they can pursue both of us if I can no longer pay. I am angry that he is taking out a big (compared to his income) mortgage now. I think his first priority should be his 2 kids (both are disabled as am I which is why I'm a Carer for them & not earning).
He has a nerve saying this is 'for them' imo. The roof over their heads is priority.

But, thank you to all who have replied. I'm glad that the mortgage provider for this house won't rescind it if he has misled anyone over his other mortgage.

I'd asked exH to hold off for, say 5 days whilst I checked his plans wouldn't affect mortgage on house kids live in. Day 4 I spoke to a local Mortgage professional. He said: OK for now as wont affect joint mortgage but defo would if you wanted to change providor or remortgage in 2029. So, we were both 'right' in a way...

So I then spoke to exH again. He said he'd been given a 20 year mortgage (so will be 79 when its paid off & retired on ill health grounds 2 years ago: part UC & part small private pension paying for it). I said it didn't 'benefit me' as he claimed. It could benefit kids in due course if he paid it off but what were arrangements if he didn't get to that point? Who was next of kin (can't be kids as Autistic & would cause huge stress. Would it be his family? (no contact) me? etc etc).
I got a text on day 4. It's 'all off' as I'd been so mean on the phone about it.
My fault he won't be leaving anything to his kids now. Perhaps ???

.

I'm bumping this as I guess he's upset me with his claim that I have somehow 'destroyed his plans to buy property to leave to the kids' by asking him if it would affect their current house (& what would happen if he doesn't pay it off aged 79)
He has a history of not doing research & for the consequences of that affecting those around him. I thought he was probably doing that again so wanted to ask. He says I am a bitch on wheels. The Underwriters were fine but I'm so awful that he has changed his mind. I know he is manipulative (one reason I'm divorcing him) but now I guess he has got me worried that I've cheated the kids out of it.

What was it that concerned you ??

His mortgage lender seems ok lending him the money. If he has missed them & committed mortgage fraud then thats on him. ✅

You say that the title deeds for your house are now just in your name so he doesn't have a claim it ✅

The only concern I would have is the mortgage is still in joint names so theoretically any change of mortgage will need his signature, although product transfers nowdays go through electronically so you might not need a "wet" signature from him.

However, you might want to remind him that being a joint mortgagee on your property means he is still liable for the payments if you dont pay.

I do think you're being a bit harsh on him. Personally, once divorced I'd want to be shot of the other person but you have him financially tied to you for at least the next 4 years. If, for whatever reason that was, I dont think you can now be questioning how he's financing his mortgage.

Fair points. But (kids house) mortgage ends in 5 years. I'm a Carer for our 2 disabled kids so if he takes on another mortgage their house will have to be sold if we cannot extendthe mortgage as there isn't enough money for him to cover his own mortgage & the one on this house (if necessary). He's poor re maintenance & never has his kids. He was going to leave me as next of kin so I'd have to sort it all out if he dies (he's retired early on ill health but is taking a 20 year mortgage that kids (who may never live independently) 'can inherit & pay off'. So he looks like a good guy?