I didn't declare HMRC debt - now its backfired on me

BarryStone

I was really worried that my substantial debt to HMRC and monthly payment plan with them would prevent us getting a mortgage. I moved the debt payments to a friends bank account and gave him money in advance for a few months.

I didn't declare it and we've had an AIP from Halifax/BoS well over and above what we were looking for.

This means we now can't get Help To Buy as our figures clearly show we can afford the full mortgage.

Realistically we can't afford anything like a property we want without getting help to buy (as we have to keep the mortgage payments around the amount we are paying in rent just now). But - they have confirmed that (using the figures I gave to the bank) - we wouldn't be considered for the scheme.

I don't know what to do. Will I get into a world of trouble if I go back and declare it now? Will they just phone the police there and then and will I lose any good will with them because of my stupidity here?

I thought I was doing the right thing as I'm running out of time to get a mortgage due to my age (39) so I wanted to give us the best chance at it. Idiotic - I know.

ACG

Go and speak to a broker. 1 lender refusing you on affordability for what you needis not the same as every lender doing it.

Dont worry about them calling the police. Technically you have committed mortgage fraud but as the intent was not to physically run off with the money I suspect you will be fine. Theyre not going to tell the police your paying a HMRC debt from another account as I dont believe that is illegal.

Speak to a broker, I cant guarantee you will get what you need but you might increase your chances.

amnblog

What are you saying here Barry?


Because you can 'afford' to buy without H2B Equity Loan you cannot get H2B?

kingstreet

Is this Scotland?

There is no restriction in England.

If you pass affordability, if you have 5% deposit, buy a newbuild and won't have any other property, you can have a 10% or 20% HTB Equity Loan.

Who is telling you you don't qualify?

When you say Help To Buy, are you talking about shared ownership?

Thrugelmir

BarryStone wrote: »

Will I get into a world of trouble if I go back and declare it now?

Application Fraud. Many lenders share the resources of an Experian company called National Hunter.

http://www.nhunter.co.uk/

amnblog

There is however a problem with trying to hide HMRC debt by concealing the payments when it is probably being evidenced in your tax code anyway.

BarryStone

@ACG - Thank you for the advise. I feel stupid not declaring this - I will speak to a broker on Monday.

@Amnblog - Thats right. I was so worried that with my debt repayment (which I've made no problem for over a year) I thought there is no-way they will lend to us with that hanging over me (its not due to be cleared until 2018).
The figures I gave them show that we have plenty of room in our budget for an increase in mortgage payments compare to how much we pay in rent. In reality we dont. We need H2B to keep things ticking over as they are
For the tax debt - my code is the usual 10000k (Can't remember the exact code off hand) as the agreement I have in place dates back 2 years.

@kingstree - Yes - Scotland. I spoke to my local housing agency, the sales people who are dealing with it and explained my figures. They said that because the bank are willing to lend us more than we need, we wouldn't qualify for H2B as the scheme is set up for those who simply can't afford to get on the property ladder. And yes - H2B - The 10-20% shared ownerscheme.

@Thrugelmir - Jesus - that looks scarey again. I wonder if I could go back to the person at the bank now and say it was a stupid innocent error without getting flagged up.

Thrugelmir

BarryStone wrote: »

@Thrugelmir - Jesus - that looks scarey again. I wonder if I could go back to the person at the bank now and say it was a stupid innocent error without getting flagged up.

The fact that intentionally hid the debt doesn't suggest an innocent error, i.e. an oversight. The one thing that's at risk is your reputation. In the finance world is akin to having the black plague. As trust forms the basis of any relationship.

moneyman12345

Help to buy is for people who don't have a large enough deposit for the house they want, therefore the scheme lets you pay 5-10%.


with equity loan you need to prove affordability of the additional 20% that you have borrowed, therefore everybody on the scheme needed to be able to "afford the full mortgage".


Simply H2B two is about deposits, not affordability. I suspect builders are telling you that have too large a deposit and don't need H2B??