Loan during process of buying first flat

moohound

dumna wrote: »

Some of those replies gave me some lights into the subjects.
Thank you.
I must say that this forum is full of bullies too: Dealers wings, Andy etc...

If you are not contributing towards someones problem don't wast your time for typing...

Getting a first mortgage is a big step, and there are lots of things to consider. Lenders have tightened up their criteria because of the global economy and problems with defaults. I don't think the replies were meant to be unkind, but what they said is important, otherwise you could lose your mortgage offer, or get into trouble for not being entirely honest about where the deposit came from.
I think they were surprised that you were not aware of this.

Lenders like borrowers who have demonstrated the ability to save up a deposit, so even if the money is a gift you have to say so.

Good luck with it all

_Andy_

Ok I'm sorry. Carry on with your fraudulent application that will probably get pulled pre-completion anyway.
Better?

[Deleted User]

If you declare that your deposit is from savings and it isn't then you have committed mortgage fraud, if you're caught doing this then your mortgage can be cancelled and you will be forced to repay the remainder, which will force sale of the house in most circumstances.

If your deposit is declared as being a gift from friends, family or an employer they will be required to declare (in writing) that the money is not a loan and they do not expect you to pay the money back. If they do this and then you do repay them you will have committed mortgage fraud. If they do sign away their rights to the deposit amount then you have no legal requirement to repay them, this will send friends, family and employers running from loaning the money to you.

A mortgage is not like an ice cream cone on holiday in Spain, you don't agree to the mortgage and walk out of the bank and never have any business with them again, a mortgage is (on average) a 25 year agreement which can be cancelled at any time. If you commit fraud and trick them into agreeing to provide the mortgage they can at any point for the duration of the mortgage withdraw.

Do not commit mortgage fraud, it's a very bad idea. If the only missing part of your deposit is 10% then wait a few months and keep saving, by lying to the mortgage provider you're making a potentially very big mistake. If you've found the perfect house how will you feel if you put down a deposit (based on lies) and then in 6 months the mortgage provider finds out and forces the house to be sold? Then you'll have lost money, been caught engaging in fraud and never get a mortgage again...

Do not do it. Choosing to lie on something as important as a mortgage on your home is insane.