Re Mortgage agreed in principle, but income figure used is incorrect.

noss

Hi All

My folks have just remortgaged their £210k mortgage free home, to borrow £60k on an interest free mortgage for two years only. My mother works part time £11000pa, and my father is retired and earns a pension. The broker arranged for a mortgage which was agreed in principle based on what my mother told him what she was earning. However, it turns out that the figure she had provided him earlier is incorrect (£14000 per annum, so it was high by 3k) has informed the broker about this error today by email immediately after discovering it and plans to apply for the mortgage later this week.

How will this affect her application? Will her mortgage agreed in principle be canceled or will they accommodate the error? If canceled, will a re application mean that there is a chance it is rejected? What about a new credit check? Will it affect her chances as it would seem she is credit hungry?

Any advice would be much appreciated

ACG

How much is the pension?
They have passed the credit check so that shouldnt be too much of a problem. It will just be affordability that may change.

Who was the lender?

Also, the £60k being interest free... Im presuming you mean they are lending this to you on an interest free basis? Rather than it being borrowed from the lender.

GMS

Think he means interest only.

How will they repay after 2 years?

Which lender is it?

What pension income does your Dad have? Private or state? How much?

noss

Thanks for your replies. I do apologies, it was an Interest ONLY mortgage. My Fathers total monthly income after tax is around 800. 400 with a private pension and 400 through other earning and allowances.