Dear Watch My Wallet
What trouble can I get into if I 'forget' to inform my mortgage
company (if re-mortgaging) or a new lender (if getting a mortgage
from elsewhere)that I now have two kids and a wife who works part
time, instead of full time.
Frankly, "in the current climate," I've got a bit of a problem
with large financial institutions making detrimental judgements on
my credit worthiness and ability to manage debt based on my ability
to procreate or otherwise.
John Burgess, Chertsey
Andrew Leakey, Managing Partner of Consumer & Social
Welfare at Stephensons Solicitors LLP, responds.
You are not required to update an existing lender if new
children arrive, or your hours of work change. However, if you
mislead a mortgage company, the consequences can be
serious. If they ask a direct question about the number
of occupants, you need to answer honestly. Again, the question
about earnings will need to be answered honestly. Not many
lenders will ask for the precise number of hours worked, but they
may ask if it is a full/part time job.
If you mislead a mortgage company, I'm afraid it is a potential
fraud. This could lead to a criminal prosecution. If the
mortgage company suffer financial loss, they could also pursue
you for this. They may also seek to repossess your home.
In short, give them the honest answer!
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