Potential mortgage fraud

[RBush22]

Hi all

My partner took out a mortgage of 700k almost 2 years ago and it was approved. However, things are getting bitter between us and I know that to get the mortgage approved, he provided evidence of income that was not genuine.

Can I go to the bank now and ask them to look into it? I don't think I can progress with the relationship with this doubt in my mind that he committed fraud.

Thank you everyone - I will take legal advice on everything not just this mortgage point. I definitely don't want him to go to prison! I questioned him at the time about the dishonesty and he took offence that I was accusing him of a crime. I left it. I'm just scared of his financial position, and ending up penniless myself if I keep trying to meet the finances for the kids while he turns round and says he has no money. He does have money but he's playing games as he holidays on his own abroad, buys expensive food for himself and buys expensive clothes for himself while I do 100% of the childcare, and now pay for most of their food etc.
It's all a shambles, and I don't want to be played here for the sake of my children....

It’s just a remortgage/remortgage with additional borrowing, depending on how chose to word it (previous mortgage adviser here). You can take out a new (i.e. on property owned outright) or larger mortgage, and the extra money goes into your bank account.

You have to specify what it’s for (often home improvements, new car, deposit on another property, consolidation of loans/credit cards etc) and it IS fraud if you don’t use it for this purpose. Many lenders have different criteria depending on what it’s for - they might only lend up to 50% of the house value if it’s for debt consolidation for example, and I don’t believe any allow gambling, if they knew that was what it was for. Nationwide won’t even allow you to borrow money to create a deposit to buy a rental property, as they consider it “business purposes” which they won’t touch.

So you were happy with the fraud when it benefited you and now it doesn't you want to use it as a weapon against him? Nice.

If it's equity release, it's not really fraudulent though if he spends it all on gambling - he could just say he changed his mind about what he wanted to do with the money.

The bank will only care about being repaid.

The family judge will only restrict his access if he's a risk to the children (risk of emotional abuse, physical abuse, sexual abuse, neglect).

You do if it is raising capital against the security of a property already owned.

Doesn't he work OP? Has his only source of income for household expenses for the last couple of years been this loan? I expect you will want to cut your losses and get as far away from him as possible. It sounds like he may struggle to pay for accommodation suitable for the children so may not be in a position to request 50:50 access.

You just sound bitter, sorry.
You can report away but it’s likely nothing will come of it as long as due diligence at the time was done.

That could fall under the banner of Financial Abuse.

See the solicitor quickly.

This ^ How can that happen??

Doesn't work - sits/sleeps on the bed all day while I do 100% of the childcare (currently on mat leave). His income comes from renting out his flat that he took the loan/mortgage on. He says he is in tonnes of debt but seemingly can afford holidays for himself and weekend trips. I believe his parents have given him money that they think he will be wise with but hasn't.

Op what is it you’re trying to achieve, one min you want full custody the next you appear to want him to continue to pay half the rent and for it to continue,

Not to be messed around and not for my children to be messed around by a father who is irresponsible, potentially abusive, and has other priorities. Whatever it takes.

If the flat is let out then he’ll have a BTL mortgage, which isn’t based on his own income but on the rental income it generates - so your belief that he must have obtained the mortgage fraudulently by lying about his income is unlikely to be the case.

His rental income is still income and you can make a claim for child maintenance through the CMS. If you’re separated then you can do that even if you’re still living together. Then you need to start taking steps towards properly separating your lives and moving on, not getting bogged down on things which are out of your control. You can’t make him pay half the rent or half the nursery fees. You can get your own life and finances in order, claim child maintenance and any benefits you’re eligible for, and be glad that he’s out of your life.

He's made you mad, and you want to make him PAY. Literally. I suggest you go and scream on a mountain or punch pillows and eat lots of chocolate to get rid of your anger. (This is what I would do). Then separate and go your own way.

If he loses out financially, the children will be the most affected. Don't cut off your nose to spite your face.

Legally, it's the favourable outcome for the children over not seeing their father.

A fraudulent mortgage application really won't matter at all in that sense.

You do if you say it's for home improvements/repay debt if it's above and beyond any existing mortgage secures on the property.

I'm also sceptical that he managed to get a mortgage in false pretences, the solicitors would then have been negligent. It's quite possible that he didn't need the money he thought he would if it's secured against another asset; and it's also very possible that he has another source of funds, that he's now using again to pay for holidays.

As someone else has said, the worst case here is he is arrested, charged, and the flat he owns is repossessed. None of that will affect his ability to see his children or go for 50/50 custody, if he wants to.

It's quite possible that he'll say you were in on the fraud, if you "suspected" it, and you'll not be able to prove that either way.

It's also quite possible that he won't actually go for 50/50 because he doesn't want it, and that's even more likely given that you've said he doesn't do much now and prioritises holidays. He's just saying it to get your back up.

Is it in your name too? So where are you living if he didn’t pay for a house with it? Usually it goes through solicitors to the purchase. You don’t really see the money

The OP's partner owned a house worth 1 million (potentially outright). He took a mortgage for 700K withdrawing that equity into his bank account - perhaps told the bank he was going to remodel the house or similar. Spent the money.
Ex is not working but is trying to pay the mortgage with rent received from renting out this £1 million flat and what he can cadge off his parents.

That is my understanding of it.

So basically he took out an equity release on a flat he already owned to gamble?

Pretty shitty thing to do 100% but not illegal & probably not done through a genuine good bank either - more likely a predatory lender who are relying on him defaulting so they can charge extra fees' costs' ect. So I doubt they'd be happy to learn hes heading to bankruptcy if his credit lending dries up.

So basically this is just out of spite yh. ? I think you have to think long & hard about weather it's worth it too you & your kids personally (has it cost you in repayments/will you have had a chance to buy a house on your own income & assets/ will this effect the kids long term ect.)

Why? A good bank will lend on a property, no issue there, it’s up to him what he spends it on, the bank isn’t the morality police.

If he used fake infomation & it wasnt flagged to release a huge amount of money from a flat he wasnt even living in I can't imagine it was a top ranked banking institution. Or he got very lucky that day.

Still point remains - it was his flat, his money paying the repayments & his gambling addiction ect. So 'reporting' would be purely out of spite & only worth it if your personally out of pocket or willing to have a long term fued about it

Whatever it takes isn't clear though.

Do you want him to have access? If so how much? And be clear on the ask.
Do you want him to give you CMS? If so apply for it and forget this idea of he contributes half of this or that.

The mortgage is irrelevant other than the fact that he's likely to go bankrupt as a result. If he has income it can be assessed for CMS, if he doesn't you need to apply for all the benefits. He sounds feckless and unreliable and frankly I'd be making my plans without relying on him

It sounds very, very complicated.
I would get as much info as you can together and go and see a solicitor.
It all sounds painfully expensive and time consuming, not to mention emotionally draining to resolve though.

If you want to split, then I'd get divorce going. He will have to provide full financial disclosure (form E) as part of this.

As PP have said, Family Courts aren't interested in all this. Mediation will highlight issues where they impact residency of the children. Go through the existing channels for divorce and any issues will come to the top.

If he's capable of fraud etc then it's likely that you digging around isn't going to be enough; leave it to the professionals.

All of this sounds like a potential red flag.