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Mortgages Tell me your horrors so i don't feel alone...

13 replies

Wishiwasanheiress · 26/03/2013 10:54

Dh visited a very large well known mortgage firms rep at a local well known estate agent. We were sent the aip and much to our pleasure it was for a great figure. Very top end of what we felt we might achieve. We therefore went out and viewed houses based on this figure.....

Last night he popped over to fill out the paperwork as based on the info we had put an offer on a house. Turns out he had submitted dh info on the basis that he was a single man with no dependants, not married with two kids.

Apparently 'everyone' does this. It 'gets you money you wouldn't be offered otherwise', it's 'the only way you will get a mortgage and support your family' that 'no one checks it' and 'just say you split up for a while if you are asked any questions, how would they know?' The house would obviously have had to be in dh name only too. But 'if you did split then you just argue it in court and the wife gets it anyway'.

It's fraud. We were pretty stunned. We have taken it further (as in reporting it not accepting!) never expected it. Are there many such stories? Or have we hit gold dust with this slime ball?

OP posts:
PurpleStorm · 26/03/2013 11:00

I don't think everyone does do this.

Our mortgage application was based on correct information about me and DH. There was never any suggestion from the mortgage advisor that we pretend that our personal circumstances were anything other than what they were.

MorrisZapp · 26/03/2013 11:02

I have never heard of children being used to calculate mortgage offers.

It goes on income, doesn't it? This sounds very odd to me.

ginmakesitallok · 26/03/2013 11:04

Morris, taking number of dependants into account is pretty standard

PurpleStorm · 26/03/2013 11:07

Number of dependants will affect the outgoings of the household - utility bills, food bills and so on - so could affect the mortgage payers ability to meet large mortgage repayments.

I'd guess that's why number of dependants is taken into account.

Wewereherefirst · 26/03/2013 11:09

I never had this with any mortgage application. Tbh if the EA recommends this advisor/company I would be put off using them. They will know what happens.

Goldmandra · 26/03/2013 11:14

This is fraud and you'd be risking losing your house if you went ahead.

Do you have the paperwork this 'advisor' submitted?

You need to contact the branch manager he works for, taking copies of the paperwork if you have them and explain what has happened.

Lots of information is taken into account when mortgage lending decisions are made. The income is just one of them.

I would approach some banks and building societies direct for quotes if I were you OP.

Manchesterhistorygirl · 26/03/2013 11:17

I saw an advisor earlier this year, he did the same thing! It was unbelievable!

KatieMiddleton · 26/03/2013 11:20

He should be regulated by the FSA. Follow the complaints procedure. I know about a multi-million pound fraud that was done by a couple of crooks like this. They were motivated by greed and stupid bonus schemes. What they actually did would have brought down a smaller bank and financed criminal activity.

I would consider reporting this fraud to the mortgage company too and possibly the police because a dodgy home loan for one family can quickly escalate to lending money for non-existent properties or people or to launder the proceeds of serious crime.

This is not normal or right.

Wishiwasanheiress · 26/03/2013 11:23

All paperwork has been submitted to complaints/compliance of the well known firm. Dh this morning is seething. Felt like a stunned mullet last night. It's fraud, can't believe it. Im talking several hundred thousand of mortgage! And plainly we weren't his first! Don't get that good at scene setting and arguments to do it on ur first trot out.

So good to see responses thank you!

OP posts:
Goldmandra · 26/03/2013 11:25

He should be regulated by the FSA. Follow the complaints procedure.

Should have said this. Contacting his manager is the first step in this complaints procedure. If you don't get a response which satisfies you take it to the next level.

FSA complaints procedure

mollythetortoise · 26/03/2013 11:34

also, really shocking advice (for you) re . not putting your name on mortgage/house. This leaves you very vulnerable. I am sure you won't split up but what if you did? At least, you would own half the house/equity - marriage or not.

Another point is what happens when you come to remortgage 3-5 years down the line and the bank asks (which they will) about dependants. Do you want to risk continuing the lie?
If you own up to your children they may not agree to your re-mortgage or they may only agree a lower amount (as your husband now has dependents)which would leave you unable to re-mortgage.
They also check your bank accounts going back 6 months and so can see what your money goes on - childcare etc.

definately report, this sort of thing is what causes housing price bubbles and was rife in 2003-2007. Definately against rules, although he may be a lone bad adviser but I suspect not.

jammybean · 26/03/2013 11:41

Not surprised tbh. I think this kind of thing is pretty rife. We were advised to do the same back in Feb, in order to get the maximum available. In the end we managed to borrow a little from family to cover the shortfall.

SwedishEdith · 26/03/2013 12:41

God, have they learnt nothing? The FSA is now called the Financial Conduct Authority, I think, now btw.

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