Should I remortgage and not tell lender about redundancy?

darren74

Is this illegal? If not, what do other readers reckon?

Hippychick

Sounds like mortgage fraud to me, surely you must represent to your lender your ability to pay by way of a salary, you can't do that if you are being made redundant.

darren74

Hippychick wrote: »

Sounds like mortgage fraud to me, surely you must represent to your lender your ability to pay by way of a salary, you can't do that if you are being made redundant.

thanks. you're right, bloody redundancies

Mandog

I assume you're talking about remortgaging with a new lender?

Don't tell your existing lender anything they don't specifically ask!

Sammy_Girl

My mortgage lender wanted proof of my employer that I was in employment. But if you're remortaging with your existing lender, I can't see them asking.

minimike2

What? Absurd!!! NO!! This is mortgage fraud!

I hope its not your intention to borrow more money when you are being made redundant....how are you going to pay it?

AndrewSmith

Can you not claim on your Payment Protection Insurance or did you not take it like some very wise people were advising not too long ago?

oilrag

looks like you mortgage advisors are as busy as I am :P

but as posted try to claim on any protection you may have. If you lie then end up in a situation where you are having mortgage arrears they may not act kindly if they find out you were lying when the application was made so its probably not a good idea

Alan_M_2

Is there not a duty of disclosure for a material change of circumstances?

AndrewSmith

Alan_M wrote: »

Is there not a duty of disclosure for a material change of circumstances?

Yes there is.

The mortgage offer or 'contract' is based on circumstances at the time of underwriting. This includes any incentives such as fixed rate or cashback.

If the borrower's circumstances change and they do not inform the lender then technically the 'contract' becomes invalid exposing the borrower to anything the lender wishes to throw at it. For example repayment of any incentives such as free legal fees and cashbacks, and even retrospective application of standard variable rate.

To The OP: Do not lie to the lender, be honest with them. How would you feel if you loaned someone your car who told you they were using it for the Tesco run, to find out that they had been using it as a mini cab?

Natty082

Digressing slightly ........I had mortgage cover for redundancy...

and I was made redundant ... I called and was told the payments would not be made for 3 MONTHS after the redundancy started... luckily I walked into a job 3 Weeks later.... I cancelled it and never had it ever again! What was I supposed to do for 3 months mortgage payment... I thought that was what the protection was for... rubbish..