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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

To fake employment contract to borrow more mortgage

108 replies

Wouldyoudothis · 26/07/2017 20:51

Name changed for this and know I will probably get flamed. Anyway, we have a mortgage, easily affordable, very small house. I've had twins so not going back to work anytime soon, especially as one is quite unwell still. My parents own a decent company. We are desperate to move to a bigger home but now on one salary can't get an increase, despite very easily being able to pay double what we pay now (more than enough for the increase we need). The lender has said I simply need an employment contract with a start date to be able to borrow the extra money. Aibu to be tempted to ask my parents to just write me a contract? Thanks!

OP posts:
PersianCatLady · 26/07/2017 21:12

that's all I need, no payslips?
Do you not realise that they can check out all sorts of things to check if the employment contract is genuine?

It really isn't that simple.

PurpleMinionMummy · 26/07/2017 21:12

Don't you have to be in employment for at least 6 mths before they consider it normally?

Original poster
Wouldyoudothis · 26/07/2017 21:13

The actual lender said to me that borrowing the extra is extremely easy I simply 'need evidence of a job to go to'. I said don't I need to work 3 months minimum, be out of probationary period and they said 'no. You simply need a contract with a start date.' They have no way of checking whether I eventually started the job, long after we had got the mortgage (start date needs to be within 6 months). I was surprised at this.

OP posts:
Eminybob · 26/07/2017 21:13

It doesn't matter if you know you can make the payments, if you can't prove it to the lender they won't lend to you.
Otherwise we would still have self very mortgages and the country would be even further and deeper into financial crisis.

Original poster
Wouldyoudothis · 26/07/2017 21:15

Just to be very clear, I am not going to do this. Very tempted but I see it is wrong for many reasons. And I'm probably unreasonable for being tempted judging by the replies!

OP posts:
Eminybob · 26/07/2017 21:16

Well your mortgage adviser is also stupid and deserves to lose their job if that is the advice they are giving.
I am a mortgage adviser by the way and I would never tell my customer to lie on their application. Just to get a sale or commission. It's utterly despicable behaviour.
Sorry to keep ranting but this kind of stuff is my livelihood, people like you could cost me my job.

Figgygal · 26/07/2017 21:17

I think whoever told you that you just need a contract with no proof of earnings was probably talking crap. We moved last year and had to provide statements and payslips it was definitely subject to more scrutiny than just a contract

SoloD · 26/07/2017 21:17

What you could do is see if you can find a mortgage which allows your parents to guarantee part or all of the mortgage.

Agree though that lieing is a bad idea.

MrsPorth · 26/07/2017 21:17

It's illegal. Don't risk it. Don't involve your family's company either.

However, genuinely doing some work for your parents (and continuing to do it) is a reasonable solution.

Blankiefan · 26/07/2017 21:17

As per PP if you're this confident you can make payments and your parents are also in good financial health, you should look into them signing as guarantors.

NapQueen · 26/07/2017 21:20

If you can "easily afford" the extra repayments then why arent you able to get a mortgage just on dhs wage?

AreWeThereYet000 · 26/07/2017 21:20

It's fraud, also what happens when your deal would come to an end and you want to change provider or you want to borrow more at a later stage of the new big mortgage? You would be asked to provide payslips of this job you supposedly have. Or would you just lie again and say you have a new job/position and get them to write a new contract.

Please don't risk it you risk yourself and your parents going to jail and the mortgage advisors job

Fiddlefaddle2303 · 26/07/2017 21:20

If you can 'Easily make the payments' why isn't the bank lending you the money on the basis of your current household income - this makes no sense at all......

AreWeThereYet000 · 26/07/2017 21:22

And for the one wage questions, they may feel able to afford it monthly but an advisor and application doesn't just look into that - amount of salary, outgoings, number of dependants, all these are looked at so they may not have been offered the amount they want on this basis, not that they came any afford it as such

AreWeThereYet000 · 26/07/2017 21:22

Can't afford*

Regalparade · 26/07/2017 21:24

They ask for three months pay slips as proof. I've been there.

Couchpotato3 · 26/07/2017 21:24

If you can genuinely afford larger repayments, then you should be able to get a bigger mortgage based on your partner's income. Have you tried talking to some other lenders? You could transfer your mortgage to another company.

LonnyVonnyWilsonFrickett · 26/07/2017 21:25

You should report that mortgage advisor...

Original poster
Wouldyoudothis · 26/07/2017 21:25

I don't know if I can say the name of the lender here but the person who told me was the person who would do the application. It is one of the biggest lenders. Anyway. Also, we don't need payslips etc as we already have the mortgage with them so the application is simply to borrow more which we could have done if I'd gone back to work after maternity. As I haven't I therefore need to show that I have a job but a contract is sufficient. Not doing this as I said earlier.

OP posts:
ImNotWhoYouThinkIAmOhNo · 26/07/2017 21:28

If you can 'Easily make the payments' do you need to borrow as much??

No respectable broker would encourage you to lie.

Eminybob · 26/07/2017 21:30

Oh just thought of something else. Not sure about the lender in question, but where I work, if you work for your family's business, as well as asking for a contract/payslips, the underwriters may also request confirmation from the company accountant that you are an employee. Because this type of set up is one of the big alarm bells for fraud.
So also be prepared to ask your parent's accountant to put their job on the line.

MrTrebus · 26/07/2017 21:30

A contract IS sufficient BUT you actually have to have the job OP you're missing the point. Also at this point all they'll ask for is the contract BUT when your application goes through underwriting they'll ask you for more stuff and they'll ask for details about any costs for childcare, how you plan to pay for that or whos going to look after your kids etc. The type of details they'll go into will only be easy to answer if you're telling the truth. If you're lying you'll get caught out.

PersianCatLady · 26/07/2017 21:31

They have no way of checking whether I eventually started the job
They could check the accounts of the business through Companies House or they could check your NI record.

Do you honestly not understand that mortgage companies have many ways of checking things out that you don't even realise??

MrTrebus · 26/07/2017 21:32

Also I'm guessing you can "more than afford" the payments in reality is because your other half perhaps declares less than what is actually earned?? Is he self employed or employed via the family company etc??

DJBaggySmalls · 26/07/2017 21:34

Its fraud, worst case scenario is you'll be caught, then you wont be able to get credit in the future.

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