Exaggering your income?

wigwam_salesman

We just got our mortgage with Northern Rock and they provided a good service and the full offer came through quickly so we have recommended them to a friend.

The trouble is he doesn't earn enough for them to offer him what he wants. His payslips are printed on A4 by the employer and several of our friends have suggested he manipulates them a bit. This sounds dodgy (to say the least) to me but they all reckon that it is pretty common on self-certified mortgages.

Trouble is I am not sure if Northern Rocks mortgages are self certified. I am trying to remember if we provided bank statements as forms of ID alone or if they actually needed them to confirm out salaries.

Could someone give me some advice to pass on that actually knows what they are talking about please.

P.S - I noticed the title misspelling just as I hit submit.

imoneyop

If the mortgage is self-cert then you don't provide and evidence of your earnings, so there is nothing to be 'manipulated'.

What he is actually contemplating is fraud! If he can't afford the level of borrowing then he needs to set his sights a bit lower or see if there is another lender that has a criteria he meets.

MortgageMamma

There are no limits as to how low some people will stoop to have their houses reposessed.

toonfish

I can tell you this - NR have a very active forensic team analysing their applications. If anyone's going to spot it they will because, for example, the gross pay and NI contributions will not tally.

Fair chance of getting a free holiday in Dartmoor.

MortgageMamma

Toonfish you do make me larf sometimes.

I'm looking for a free holiday this year lol

lush_walrus

As everyone above has said (very clearly...) this is fraud and if discovered, is a very serious offence. Up to your friend if they want to take the risk on that side. But, on an affordability side your friend is also absolutely crazy. Legitimate lending levels have/are getting home owners into trouble, without going over and above that level.

If you are a friend, the best advice you can give them is buy something they can afford, and if there isn't anything wait!