Would this constitute fraud????

Jonbvn

Since we are looking at the pan-Europen angle, have you thought about a mortgage in Euro's? The interest rate is excellent (if you are borrowing) and the exchange rate (with sterling) has been quite consistent recently.

Just a thought!

tigertiger72

Debt_Free_Chick wrote: »

I think TigerTiger needs to be clear about what he's intending to do. I can't see that he is intending to hide the German loan ... but it might be possible.

TigerTiger ... what is it about what you're doing that you think might be fraudulent? Having two mortgages in two different countries is not, in itself, fraudulent - provided you are 100% honest when you complete each application form.

If you are thinking of being less than 100% honest then, yes, that's probably fraudulent. If you are simply asking whether your proposal is "do-able", then the answer is probably "yes - provided you are 100% honest", but you may struggle to find a large pool of lenders who will offer what you want.

HTH

You guys are right and I am abandoning this proposal! However I am starting a new thread to see if there is any solution to my situation....

Debt_Free_Chick

tigertiger72 wrote: »

You guys are right and I am abandoning this proposal! However I am starting a new thread to see if there is any solution to my situation....

Thanks for this - you are very wise to abandon any thoughts of being less than 100% honest.

In principle, getting a mortgage just on affordability terms is not impossible - there are lenders who will adopt this approach.

Also, getting two mortgages on one property is not impossible - but the one lender will only have a second charge over the property (the other lender having the first charge). Whilst many lenders will accept this, they are likely to charge you a less attractive interest rate - the higher rate simply reflecting that they have a "lower value" of security (the lender with the first charge being "in pole position").

You should simply consider raising capital, in Germany, on the German property. Use this to part fund/pay the deposit on the UK home and apply for a UK mortgage on the balance of the purchase price.

When you complete the application form for the UK mortgage you have to state where the other funds are coming from - so you need to confirm that you have taken a mortgage on the German property.

This way each property will have its own mortgage, with a lender based in the same country as each property.

I can't see a problem with this in principle.

HTH

danlightbulb

I feel bad for what I am about to say but if it were me and I was in this situation I would get the German mortgage as cash in the bank and not declare it to a UK lender - but only if there was no other (cost effective) choice.

I think there is mortgage fraud (as reported on the news i think recently) throughout many people in the uk anyway from self certs to people faking payslips. Not saying its right and moral but I wouldn't let it stop me from getting my dream house when I know its affordable.

How does one get a mortgage from another country when one is resident in the uk and registered as british nationality anyway?

tigertiger72

My wife is German and all her family still reside there. The house is also in her name that is currently uninhabited.....

danlightbulb

You mentioned that house prices are increasing in Germany so I can see your reluctance to sell for a few years.

If you don't mind me asking, and reading your other thread, you can get a hell of a house for £800k! In fact you can get a hell of a house for £600k or even less (depends where you live).

Have you considered letting this one go and getting one a little lower down the price bracket. When your German house doubles in value in a few years time you can sell it and move up the UK ladder. I would worry about really stretching for a house given the possible coming downturn in the uk market.

tigertiger72

Please see my plan B thread...I am reluctantly coming to that point of view. I am not going to lie during application - I either need a lender who will not ask about other mortgages on the application, or who might make allowances for it as the other loan is secured in Germany - not the uk property.

It is a hell of a house - that is the problem - it is all that we ever wanted! The problem is trying to remain rational when it feels so right!!! Particularly when the money saved will constitute a partial buffer against rate rises...