Personal Loan worry

cmart021

Hi

We recently got a mortgage with halifax and one condition of the mortgage was that a personal loan with another building scoiety was to be paid in full. With all the costs at the time of buying we could not pay the loan off but the solicitor got us to sign a form to say that we had.

We would rather switch building society to a bank and we are now looking to get a personal loan to clear the existing loan and overdrafts.

We are worried that applying for a loan with any company tied to halifax (hbos,llyods,sainsburys,tesco amongst others) in some way or other that the loan we said we had paid off will show up and they will start asking questions.

I know it sounds complicated but we would really appreciate your help.

Many thanks

cmart021

Are we worrying about nothing? We were looking at applying for a sainsburys bank loan and they are 50:50 with bos.

Should we go ahead and apply. Whats the worst that could happen?

ILW

cmart021 wrote: »

Hi

With all the costs at the time of buying we could not pay the loan off but the solicitor got us to sign a form to say that we had.

Is it me, or is commiting fraud just a way of life now?

StuTheDon

Does/did the solicitor know that you had in fact not paid off the loan? If he/she did then they are in trouble over this.

How much is the loan for? Is there any chance you could just pay it off by saving, or is it significant.

And yes, you have committed fraud here.

ILW

cmart021 wrote: »

Should we go ahead and apply. Whats the worst that could happen?

Fraud carries a maximum penalty of 15 years, but I doubt you would get that long.

talana

cmart021 wrote: »

Should we go ahead and apply. Whats the worst that could happen?

And if paying off the loan was a condition of the mortgage and the lender finds out that you haven't done so, I imagine they're within their rights to void the mortgage and demand immediate settlement if they chose to.

Rafter

cmart. Halifax wouldn't have asked you to repay the loan unless you needed to to pass their affordability or earning multiple tests.

If you have a big moregage payment versus your income, you may find it difficult to get any sort of consolidation loan in any case, particularly in the current market.

ILW - unhelpful comment about jail term!

Cmart - get yourself a proper budget, get your spending under control and pay the loan off as soon as you can.

Good luck

R.

ILW

Rafter wrote: »

ILW - unhelpful comment about jail term!

R.

I believe factually correct though.

cmart021

Hi

Thanks for your replies. Im just a young average joe with a steady job, a wife and a child on the way. I can afford all payments I took out or I would not have otherwise taken them out.

To those adopting a moral high ground. When we took out our mortgage we were ill educated about the whole process and were told a white lie would not hurt anyone. We were actually offered fake accounts and 'jobs' by some people but slogged it through the mortgage process ending up with a deal. A week later deals changed, rates up and the loan condition added at the stage we had fallin for the house and had a lot of finances(deposit, fees) already in place due to the conditional offer. It was either leave it all and still pay a mountain of fees or bend it and we were advised to take the latter route.

Whilst I understand now that may not have been the correct decision I really can't undertsand how anyone in this world can stand on their moral platform and criticise someones mistakes when they have most likely made plenty themselves (including some on this forum and the banks).

I have spending under control and the loan is not substantial would just now like an extra car as my wife is expecting and to clear up an overdraft on a previous student bank account.

Many thanks again.

ILW

cmart021 wrote: »

Hi

Thanks for your replies. Im just a young average joe with a steady job, a wife and a child on the way. I can afford all payments I took out or I would not have otherwise taken them out.

To those adopting a moral high ground. When we took out our mortgage we were ill educated about the whole process and were told a white lie would not hurt anyone. We were actually offered fake accounts and 'jobs' by some people but slogged it through the mortgage process ending up with a deal. A week later deals changed, rates up and the loan condition added at the stage we had fallin for the house and had a lot of finances(deposit, fees) already in place due to the conditional offer. It was either leave it all and still pay a mountain of fees or bend it and we were advised to take the latter route.

Whilst I understand now that may not have been the correct decision I really can't undertsand how anyone in this world can stand on their moral platform and criticise someones mistakes when they have most likely made plenty themselves (including some on this forum and the banks).

I have spending under control and the loan is not substantial would just now like an extra car as my wife is expecting and to clear up an overdraft on a previous student bank account.

Many thanks again.

I assume this is partly pointed at me.
I have made no moral judgement whatsoever, merely pointed out that both you and your solicitor have commited fraud. ( although the solicitor will probably deny it). Whether this is wrong or right is another matter.

cmart021

Yeah it was partly pointed at you. Thanks for merely pointing that out, solves the problem I had.

Where can I put your name down for the perfect citizen award?