Legal vs moral? (ref One Account)

grafter101

Hopefully some kind soul may offer some advice. My situation is this:

- I've had a One Account mortgage for several years on which I now have a positive balance, although the "on-target" date to become debt free is still 15+ years away.

- My "facility" is around £140k, so in theory if I wanted to - I could draw out up to £140k tomorrow, i.e. making my One Account balance minus £140k. Not that I would, but in theory I _could_.

- In 2008 alongside regular employment I started my own small business, so I complete HMRC self assessment every year etc.

- In 2013 I was made redundant from the regular employment, at which point I decided to focus fully on growing my business, still paying my regular small business income into my One Account each month.

- My small business income is (now grown to) approximately 50% of what I was earning from the regular day-job, as the day-job was quite well paid. But, for one reason or another I did not yet tell the One Account that I am self-employed.

Okay, so two questions:
1. Does this potentially land me in deep poo with the One Account, even though I'm £100k ahead of target of where they think I should be, have a positive balance and have no intent of even returning into a negative balance?
2. If I tell the One Account that I am self-employed, would anyone with experience of them know whether they would effectively put me onto a different type of account? I'm hugely keen to keep this type of account as I may well be purchasing another property in the next 12 months with my partner (who has a "regular" job but isn't named on my One Account, though I guess I could add her to it).

I'd like to point out btw that getting a One Account mortgage was the best thing I ever did and cannot speak highly enough of it, though I did last hear that they don't offer this product any longer.

Many thanks in advance for any constructive and informative response.

Paul

getmore4less

Doubt anyone tells the mortgage company their income status has changed untill they have to.

What is in the mortgage terms.

dimbo61

People change jobs and income all the time and lenders are not interested UNTIL you stop paying the mortgage payments!
Then you get all sorts of letters at £25/23 each telling you that you have not paid the mortgage payment/s and the debt management people will be in contact.
Have you got 2/3 years of accounts for your self employed business?
Will help if you want to buy a new place with New partner

ACG

You only have to tell the lender about a change in jobs prior to completion.

Once you have completed its fine. So long as you keep up repayments you could go and be a drug runner for all they care (providing you are not working from home ) - police may have something to say about it but the lender will not.

Thrugelmir

grafter101 wrote: »

- My "facility" is around £140k, so in theory if I wanted to - I could draw out up to £140k tomorrow, i.e. making my One Account balance minus £140k. Not that I would, but in theory I _could_.

Could you?

As you've mentioned in your post your circumstances have changed. This might be an issue if you attempted such a transaction. RBS I suspect will now conduct checks as a matter of course so not to fall foul of affordability rules. Lending you money which you are unable to repay becomes there problem not yours.

amnblog

No lender is going to conduct checks unless there is a material change to the contract - they do not have the resources.


Our OP is not obliged to inform the lender of his change in circumstances.

grafter101

dimbo61 wrote: »

People change jobs and income all the time and lenders are not interested UNTIL you stop paying the mortgage payments!
...
Have you got 2/3 years of accounts for your self employed business?
Will help if you want to buy a new place with New partner

I have, though I suspect it may be worth considering having my partner added to my One Account sooner, such that if/when we come to buy a second property, they at least have some info on her, i.e. before when/if I tell them I'm self employed in which case they may(?) otherwise put me on a non-mortgage account which would mean we'd be unable to take advantage of this type of offset account in future (because they no longer offer this account to new customers). If anyone has any specific experience or knowledge of how the One Account team view this then I'd love to hear about it.

The end goal is I'd like to keep my original property which I own outright, have an offset mortgage with my partner on a second property but not be treated as a major risk/leper because I'm self employed. I have little knowledge of how the lenders would treat me even though I could offer my original property as security.