Solicitors and Banks seeing existing debts

scotslad1983

Hi there,

I was told by my friend, who is an accountant, that if you put forward a certain percentage deposit on a house (he thought it was 30%) the solicitors or banks do not have to see bank statements, and find out exactly what you owe already. I am teetering around the 30-40% deposit so would be very interested if anybody had any knowledge about this.

Many thanks in advance

Doozergirl

All the mortgage application forms I've seen ask directly about your other debts. They're just there on the form as standard

They mightn't ask if it's a non-status mortgage or suchlike, but I suspect you pay for the priviledge of not having to divulge information.

cruella_de_vile

The house we recently bought we put a 50% deposit down and had to give all our incomes and outgoings, as far as I know if someone is going to lend you money they need to know you can afford to pay it back.... maybe it's something to do with the banking code

olly300

If you are asked details about income and outgoings and lie to obtain a mortgage it is fraud as you are obtaining money by deception - http://www.fsa.gov.uk/pubs/ceo/ceo_letter_04feb04.pdf

My bank statements etc. where not looked at and my deposit was less but then I have no reason to lie.

MJMum

Our mortgage less than 50% but we still had the standard forms to fill in. AFAIR, we provided pay slips and there was a question re. any other loans & what the balance(s) are, and how many credit cards do you have.

Rick62

And when they do their credit searches they will usually see any loans/credit card balance etc. If you havn't delared then they may reject your application just for non-disclosure (aside from fraud).

honeypop

If you've got that much for a deposit, why not use it to pay off money from your existing debts that you wanted to hide?

scotslad1983

My Dad is doubling the deposit I have saved with him, on the basis I am debt-free.

I read the letter further up the thread, but I point out I would not be lying about my salary, and ability to pay the mortgage back, but would not be disclosing the £5k credit card!

clutton_2

you cannot "hide" a £5k credit card - what your lender is looking for, is not the solely size of your credit card debts, but, your ability to repay them on a regular, consistent basis. Don't even think about lieing. There is a Hunter system in place, which tracks information on mortgage application forms.

scotslad1983

So if I do repay them on a regular, consistent basis, will I be ok? I've never missed a payment, and pay extra to them whenever I can. I've reduced my credit card debt from £12500 to £5000 which it is now.

Ian_W

Pretty much the same answers to pretty much the same question as last month, scotslad:
http://forums.moneysavingexpert.com/showthread.html?t=342571

All the lenders are interested in is whether you can afford to repay the mortgage - YOU SHOULD BE MORE INTERESTED IN THAT THAN THEY ARE!!