Having a second mortgage?!?

Phil_rich

Afternoon all,

My brother has a house with his ex girlfriend for which they have a joint mortgage. The have been split up for 18months and the house has been up for sale but still no interest. At the moment the house is empty, both have move in with new partners. The dilema has now arrisen that my brother now wants to buy a house with his fiance but the will also need a joint mortgage.

I know the mortgage company will restrict their borrowing if he tells them he already has a joint mortgage but if he didn't tell them, would they find out anyway? I am not advocating this, I am just trying to find the facts to point them out to him.

I realise it is fraud to not declare it but would the mortgage company have a means of checking? Does a current mortgage appear on your credit report?

This would be a temporary (ish) measure until the old house finally sells.

Thanks

Phil

RufusA

It would be a pretty worthless credit report if it didn't show existing credit.

The credit report will show the mortgaged amount, who it was jointly held with, how much is outstanding and the payment history, where he previously lived etc.

So yes they will find out, yes he will be commiting fraud, and a good brother would give him a stern talking to if he even suggested it.

Rufus.