Disclosing something that will happen to my salary

7sefton

Hi everyone

I've had an Agreement in Principle (AIP) but have a question:

I currently receive a London salary allowance of £3500 per annum on top of my salary of around £40K.

However from January this allowance will no longer be paid, because I will move to an office outside of London.

My AIP makes clear that I should tell the bank if I know of anything that will change in the future, but if I apply for a mortgage now they'll never know.

I know the official answer will be 'you must tell them', but I'm looking for advice on what the consequences/likely risk of not tellin them would be. I'm confident I could keep up the monthly repayments on a fixed mortgage, have done the budget and have family available to help if really necessary. Keeping my London allowance in consideration might make all the difference to the house I can buy.

Thanks!

nidO

7sefton wrote: »

I'm confident I could keep up the monthly repayments on a fixed mortgage,

Said every person ever who then had their house repossessed because they couldn't keep up with the mortgage repayments.

Its basically your risk. The chances of them ever finding out are essentially zero, but not telling them is mortgage fraud and could ultimately result in them calling in the entire mortgage if they were to somehow find out.

You may think you're perfectly fine affording the place on your lower salary, but does your bank? By this I mean, if you plug in your lower salary into their affordability calculator does it still allow you to borrow the amount you're after? If so, there's no real reason not to tell them.

lisa110rry

Well, surely "London Weighting" is paid because of higher costs in London. You will not be working in London, thus your costs will be lower. Therefore no change to your available funds?

HENRY78

Don't bother telling them especially if you are dealing with them direct. If you tell them you will get some idiot contacting you and you will have to go through the ridiculous process all over again. If you are happy with the repayments and you feel you can comfortably afford it then go for it.

amnblog

Not telling them is mortgage fraud.

The ball is in your court.

marsman802

Yeah we applied for a 6-month mortgage app because we knew my wife would be on maternity leave and only receiving statutory pay.
We did this because it meant we had payslips to do a normal app and then 6 months down the line the new lower rate kicked in.

We knew we were comfortable and yes, whilst its a risk, we had built up roughly £30k in savings to cover us so as long as you know you'll be fine then no one will know you stopped earning some London weighting.

But it would be interesting to see if it HAS happened to anyone so please speak up now as i'd like to know for sure (for future of course!)

Goldiegirl

If you are moving to a property in a different area that is not within commuting distance of London, they'll work it out for themselves, and query whether the London weighing is going to continue.

If you are buying a property in the same area that you live in now, then they wouldn't know unless you told them.

But, even so, there's still a risk. If the purchase dragged on into the new year, what if the lender decided they wanted up to date payslips. They wouldn't like that you had with held information from them. It might mean they'd want to reduce the amount they lend you, or, even worse, decide not to lend to you at all.

It's your call, of course, but generally, being truthful means less sleepless nights!

fashionvictim

Goldiegirl wrote: »

If you are moving to a property in a different area that is not within commuting distance of London,

What area is not in commuting distance of London... ? You'd have to move a very long way away. Within my department people commute to London daily from Brighton/ Oxford / Sittingbourne/ Reading.

Surely until it happens it hasn't happened.

minimike2

HENRY78 wrote: »

Don't bother telling them especially if you are dealing with them direct. If you tell them you will get some idiot contacting you and you will have to go through the ridiculous process all over again. If you are happy with the repayments and you feel you can comfortably afford it then go for it.

Do not listen to this very ill informed person.

Here is what the CPS think to mortgage fraud:

http://www.cps.gov.uk/legal/s_to_u/sentencing_manual/obtaining_mortgage_fraud/

Goldiegirl

fashionvictim wrote: »

What area is not in commuting distance of London... ? You'd have to move a very long way away. .

We don't know where the OP is moving to - if he's moving to Yorkshire, he's not within a daily commuting distance. I live in the South East myself, so I'm fully aware of how long some peoples daily commutes are.


I wanted to make the OP aware of questions the lender may ask