didn't declare a credit card debt

ccc1800

I was a bit stupid and when making a remortgage application with a new lender (in person and didn't sign anything) and didn't declare a credit card debt. No real reason other than embarrassment at having run up the cc debt as the mortgage I am applying for is affordable and I was planning to use some of it to clear the cc debt. What are the repercussions on me (I now realise the remortgage will be turned down). I am worried that I have commited fraud and do the banks ever take these matters further i.e. prosecutions etc

I have since been totally straight with my existing lender and obtained a further advance without any problems

kingstreet

So you've applied for a remortgage and not disclosed a credit commitment? I expect they'll come back to you and ask you if you plan to pay it off, or if it will continue.

Repercussions? Unlikely to be any.

What do you mean you've since got a further advance? You went back to your existing lender and made an application for further credit before knowing the outcome of the remortgage application?

ccc1800

kingstreet wrote: »

So you've applied for a remortgage and not disclosed a credit commitment? I expect they'll come back to you and ask you if you plan to pay it off, or if it will continue.

Repercussions? Unlikely to be any.

What do you mean you've since got a further advance? You went back to your existing lender and made an application for further credit before knowing the outcome of the remortgage application?

Thanks for the reply. TBH I paniced a bit and have asked for the mortgage application with the undeclared credit to be cancelled as I didn't want to be implicated in any type of fraud. I then spoke to my existing lender who have agreed to the advance needed

Thrugelmir

If you cancelled the application then it would have been binned. End of story.

jamesd

Had you proceeded they may have made a CIFAS entry saying that there was a problem and they either did or didn't lend. The way to fix that and proceed is to tell them as soon as possible that you were flustered and forgot to mention the credit card balance, and ask them to be sure that they include it in their decision-making.

People make mistakes all the time. Rapid correction is fine, the sooner the better.

kingstreet

It's a shame you posted on here only after your somewhat extreme reaction. You could simply have reported the error to the lender and given them the chance to decide if they wanted to lend to you.

embarrassment at having run up the cc debt

It's unlikely it would be anything new to someone in this business for any length of time...

What was the rate for the remortgage product and what rate are your existing mortgage and further advance? I'm curious what this has cost you.

ccc1800

kingstreet wrote: »

It's a shame you posted on here only after your somewhat extreme reaction. You could simply have reported the error to the lender and given them the chance to decide if they wanted to lend to you.



It's unlikely it would be anything new to someone in this business for any length of time...

What was the rate for the remortgage product and what rate are your existing mortgage and further advance? I'm curious what this has cost you.

My reaction maybe considered extreme but tbh the whole thing was praying on my mind. With regards your other query I don't have the rates to hand but I will be slightly worse off by staying with my current lender but not by much as there was a fee that had to be paid to get release me from my original mortgage. This is a lesson learned though and the next time I am looking for a remortgage I will be meticulous in being honest

ccc1800

jamesd wrote: »

Had you proceeded they may have made a CIFAS entry saying that there was a problem and they either did or didn't lend. The way to fix that and proceed is to tell them as soon as possible that you were flustered and forgot to mention the credit card balance, and ask them to be sure that they include it in their decision-making.

People make mistakes all the time. Rapid correction is fine, the sooner the better.

Thanks for the reply, can you clarify what the implications of a CIFAS entry against me would be?

jamesd

CIFAS records cases where there is believed to have been possible fraud, with various flags saying how strong that belief was. It'd mean that your future applications would be viewed with increased suspicion about the details they contain.

There's also National Hunter which usually gets a record of information supplied at the time of an application. It's used to look for inconsistencies, like suddenly varying incomes. They say that if no issues are detected by the loading organisation, data will be held for 180 days, else the data can be held for up to 6 years.

Telling the place you applied to that you missed something would be sufficient to avoid anything negative at either of those two if you did it before their own underwriting noticed.

It's clear that you don't have anything hugely negative about you, or you wouldn't have got the money from second place. But in the future, just let the place know and they'll just deal with it as a typical consumer mistake, happens all the time.

ccc1800

jamesd wrote: »

CIFAS records cases where there is believed to have been possible fraud, with various flags saying how strong that belief was. It'd mean that your future applications would be viewed with increased suspicion about the details they contain.

There's also National Hunter which usually gets a record of information supplied at the time of an application. It's used to look for inconsistencies, like suddenly varying incomes. They say that if no issues are detected by the loading organisation, data will be held for 180 days, else the data can be held for up to 6 years.

Telling the place you applied to that you missed something would be sufficient to avoid anything negative at either of those two if you did it before their own underwriting noticed.

It's clear that you don't have anything hugely negative about you, or you wouldn't have got the money from second place. But in the future, just let the place know and they'll just deal with it as a typical consumer mistake, happens all the time.

Once again thanks for the reply - I don't know if their own underwriting noticed it took a week for me to cancel the application - so far I have heard nothing from them. Does the CITAS/Hunter entries get updated from an initial application or when there is a full application i.e. I sign something? The money from my present lender has been agreed on the phone and I have returned the paperwork for them to proceed and I am hoping the situation with not declaring the cc debt wont impact that

ccc1800

ccc1800 wrote: »

Once again thanks for the reply - I don't know if their own underwriting noticed it took a week for me to cancel the application - so far I have heard nothing from them. Does the CITAS/Hunter entries get updated from an initial application or when there is a full application i.e. I sign something? The money from my present lender has been agreed on the phone and I have returned the paperwork for them to proceed and I am hoping the situation with not declaring the cc debt wont impact that

still a bit worried about this can anyone advise if a mortgage application that ran for a week with incorrect information (undeclared debt as described above) is likely to stop my further advance from my current lender when they do the full credit check?