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Ask the Expert - Should I Tell Mortgage Lender about Change in Circumstances?

Andrew Leakey 14/05/2012 11:17:17

Ask the Expert - Should I Tell Mortgage Lender about Change in Circumstances?

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.

Andrew Leakey

 

 

 

 

 

 

 

Dear John,

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!

Follow the Stephensons team on Twitter: @SolicitorsLLP

Andrew Leakey

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