Mortgage fraud? Broker using incorrect details on application

marcusjames

Background is that I'm living overseas and looking to get a buy to let property in UK. Had an offer accepted and gently pushed to use the agent's in-house broker.

I explained the overseas status and the broker said it would be no problem. During the application process he used my UK correspondence address (in-laws) and even googled the UK address of my employer. When I challenged this, his answer was "if the mortgage company don't ask, we're not breaking the law", and then "what they don't know, can't hurt them".

I feel very uncomfortable about this and refused to sign the application until the addresses are changed. I imagine the final approval would contain terms and conditions that I am a UK resident.

He has since taken the survey fee (without my approval).

I had an email from him today saying the mortgage company are now aware that I am overseas and are happy to proceed. However, he cannot produce any official documentation to that effect. When I questioned him directly if his confirmation was sufficient, he replied "buy to let mortgages are not regulated by the FSA". Not sure why he felt it necessary to highlight this to me.

Any advice would be appreciated. Should I trust his word and wait for the final documents to see the terms and conditions. The risk with this is that he would have been paid and there's is only an email trail saying that I told him I was overseas. Everything else shows UK addresses etc.

Thanks in advance.

powerwin

I'm no expert but a mortgage broker saying "if the mortgage company don't ask, we're not breaking the law", and then "what they don't know, can't hurt them", is not the kind of mortgage broker I would want acting for me. In my view, you need to adhere to mortgage terms and conditions and it's your duty to make sure the mortgage company has been fully informed, otherwise you open yourself up to problems down the line.

Rgds

powerwin

Also, from what you've said, your broker sounds untrustworthy, so to cover yourself, I would ask for him to expressly put in writing to you that he has informed the mortgage lender that you are overseas. If he isn't prepared to do that, then it should raise questions about his integrity.

Disclaimer: This is not professional advice (from me).

Rgds

GMS

Ask the broker to send you a copy of the application form. This will show what the lender has been told.

Which lender is it you are applying to?

marcusjames

Thanks.

The lender is the Mortgage Works. On their websites it states they do not lend to overseas clients. I called them but they refused to confirm, asking me to liaise through my broker.

GMS

You need to speak to the broker asap. You should get them to confirm it has been agreed with The Mortgage Works that they will lend to an overseas applicant (looks unlikely) and tell them to make sure no valuation is carried out until the application has been agreed.

If you have any concerns as to the information provided to the lender by the broker you should inform the lender asap.

woodsey2002

A couple of months ago a broker we enquired with looked at Mortgage Works on our behalf but was informed that as we had lived overseas we would not be eligible for a mortgage until we had been resident in the UK for 3 years.
This was not for a BTL mortgage but I find it unlikely that their policy would be so different for a BTL mortgage if they require people applying for a residential mortgage to have been resident in the UK for a full 3 years.

herbiesjp

You need to stop the application straight away.

You need to put in a complaint to the company the broker works for.

You need to get in contact with a good honest whole of market adviser who has dealt with these scenarios before.

There are legal ways of getting these mortgages agreed but it seems your current broker does not follow the law or regulations.

It will depend on your scenario and what you are looking to do but it should be possible.