Active discussions

Meet the Other Phone. Child-safe in minutes.

Meet the Other Phone.
Child-safe in minutes.

Buy now

Please or to access all these features

Talk
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:
ShellyBoobs · 26/07/2017 21:35

I can see how tempting it might still be, OP, knowing you can afford it.

But glad you've decided against the plan because people do go to prison for mortgage fraud even if they're making the payments, if they're found out and the lender wouldn't have lent to them if they'd been honest.

NoSquirrels · 26/07/2017 21:40

Have you just approached your current lender? Or have you been to an all-of-market specialist mortgage broker for advice?

If not, start there. They will know which lenders use which affordability criteria, etc etc. I can recommend who we have used and are very happy with.

Your plan is flawed because it's fraud, and you'd need several other people to lie for you. Your parents might, I suppose (although they;d be better off giving you a loan of extra deposit, if that were possible) but as a PP has said, family businesses would immediately flag up more checks in the underwriting, and then their accountant would need to lie for you too. Which would potentially lose them their entire livelihood, so that would be irresponsible of you to consider putting them in that position.

The only other thing I'd say is that even if you consider it "really affordable" now, you have just had twins and, with all due respect, your life is about to get much more expensive on only one salary. A bigger house will only increase that pressure.

clarinsgirl · 26/07/2017 21:42

Could you explain why you can easily afford more than the lender is prepared to lend please? Where is the extra money coming from?

Whymustyoubringinthebirds · 26/07/2017 21:44

Some lenders do accept contracts but they do have a criteria the contract needs to meet and as another poster has said family businesses represent a higher risk and I would think it would be unlikely a contract would be accepted for a family business it would likely be payslips and bank statements requested

Mortgage lenders work on stressed payments to account for changes in interest rates - when I remortgaged my property I was told what my payment would have been based on the highest interest rate in the past 15 years and it was more than double my current payment Shock

thecapitalsunited · 26/07/2017 21:46

About 10 years ago my uncle did this to fund some BTL properties. His mate owned a business and made him some paperwork to show that he earned however much it was that the mortgage company needed to see him earn.

I was all going swimmingly for a number of years until he got caught out. He was sentenced to 12 months in prison for fraud specifically obtaining a money transfer by deception. His mate was given a police caution. He had to pay the mortgages while he was in prison then the houses had to be sold and the money returned to the lenders. He wasn't allowed to keep a penny because it was classed as proceeds of crime.

starving · 26/07/2017 21:47

Try a different lender or go to a broker. There are online comparison tools you could use. Different lenders have different criteria. When we were looking for a mortgage it was amazing how different the amounts that the various lenders would lend us.

Please also remember that interest rates go up as well as down. If you can afford it now, can you still afford it if interest rates go up a few %. I have been there (not recently though!)

Original poster
Wouldyoudothis · 26/07/2017 21:50

Just to answer a few have asked about how we could afford it. My dh is employed, nothing to do with family and pays all taxes etc. He earns 45k and maximum mortgage we can have is just over 250k. Our repayments are currently 600 pcm and with the increased borrowing our payments would be 850pcm. His net income is 2.5k. We don't spend much and as you can see 2.5k pcm easily covers a higher mortgage payment. They won't lend anymore. Oh well. I will go back to work when they go to school and then we can move.

OP posts:
Original poster
Wouldyoudothis · 26/07/2017 21:52

The capital- that's very scary. Clearly from all the replies it's not a road anyone should go down.

OP posts:
WannaBeDelgadaToFitInToMyPrada · 26/07/2017 21:52

Do they know you have two kids. Can you reapply say you have no kids so you can borrow more?

NapQueen · 26/07/2017 21:53

So save HARD for a year or two and put down a bigger deposit?

Notknownatthisaddress · 26/07/2017 21:53

Can't believe you need to ask people this OP.

Absolutely not! Is the answer.

Anyone who says any different needs a smacked bottom.

Cantspell2 · 26/07/2017 21:53

And what happens when interest rates go up? At the moment they are being kept artificially low but sooner or later they will being to rise again.

PurpleDaisies · 26/07/2017 21:54

Do they know you have two kids. Can you reapply say you have no kids so you can borrow more?

I think the op having said she was a SAHM might have given that away...

Besides, it's still a fraudulent declaration.

JaceLancs · 26/07/2017 22:01

I'm surprised on an income of 45k that you could borrow 250k - unless I'm missing something

Bluntness100 · 26/07/2017 22:03

ok, so basically you're at the max now with his one salary and you wish to borrow more is that right? You're already at four times his salary and would like to go to nearly six times as you are now unemployed and have twins?

Mortgages are based on affordability on What happens if rates increase. Could you survive if the payments doubled.. Yes you could fake it, but it wouldn't be smart. No one will lend six times someone's salary. I wouldn't do it, but I think you're right, they don't check up, and yes if they did your parents could lie.

3luckystars · 26/07/2017 22:05

Could your parents go guarantor?

SummerSazz · 26/07/2017 22:07

We borrowed more last year on an existing mortgage and had to provide 3 months pay slips. We've just remortgaged (to a fixed rate) with the same lender and had to provide the latest payslip each.

MsLexicon · 26/07/2017 22:07

Is fraud, you are being ridiculous OP.
If you want to live somewhere very small for a bit , fine.

MsLexicon · 26/07/2017 22:08

Anyway they check your payslips for three months so they will soon suss you gal.

HerOtherHalf · 26/07/2017 22:09

As stated, it's fraud and it's illegal. If you hold yourself to reasonable standards of personal integrity, the likelihood of being caught and/or prosecuted shouldn't even be a factor.

WannaBeDelgadaToFitInToMyPrada · 26/07/2017 22:15

It is not like the bank are doing you a favour lending u money that you will pay back twice over.

NoSquirrels · 26/07/2017 22:15

Our repayments are currently 600 pcm and with the increased borrowing our payments would be 850pcm. His net income is 2.5k

Do you live on fresh air? Our income is not wildly dissimilar, I have 2 DC, our mortgage is £600 pcm give or take and I worry about what would happen if we lost our ability to pay. No way I would be comfortable with doubling our mortgage on our home - and you are on a single income so doubly exposed.

Children get more expensive as they get older. They really do. We're not extravagant by any means but clothes, shoes, activities/childcare, food, insurances, health/dental, savings, car loan, etc etc. It all adds up.

I think your idea of "really affordable" is actually slightly naive.

Eminybob · 26/07/2017 22:20

£45k to support a family of 4 isn't really that much.
Interest rates are very low now, so yes you can afford the payments, and could probably afford to pay more, but what happens in the future if interest rates go back up? If your payments double could you afford that? Plus all the outgoings for your family?
Believe it or not, lenders aren't just putting silly rules in place to piss people off. They want to lend money, it's what makes them profit and means their business can continue, but it needs to be responsible, to protect you as borrowers from taking on mortgages you may not be able to afford in the future.

SuperBeagle · 26/07/2017 22:23

I think you have a fundamental misunderstanding of long-term affordability if you think that earning 2.5k per month with an 850 mortgage repayment is "affordable". It's really not, and you could quite easily find yourself up shit creek when interest rates go up (and they will). Again, this is exactly what happened with the subprime mortgage crisis and subsequent global financial crisis.

Original poster
Wouldyoudothis · 26/07/2017 22:31

Er, I'm not sure if it's been missed but again, just for clarity, I am not doing this and I am waiting until I go back to work when the twins start school.

OP posts:
Swipe left for the next trending thread