Mortgage fraud?

IAMworried_sick

Hi all,

I'll try to keep this short.

I'm married and we have 2 kids who are 4 and 5. In late 2014, I took out a 90% LTV mortgage through a broker in an IFA firm. I had talked to 2-3 lenders before him who all said that they couldn't get me a mortgage so I was ecstatic when he got this done.

Fast forward 2 years, our fix was about to end and I emailed the broker to check for a better rate to remortgage only to learn that he no longer works there. I took a colleague's referral and saw his broker who went through the numbers, asked me to leave it with him and got back to me a few days later saying that he was struggling to place me and couldn't see how I got the mortgage in the first place.

I was a bit disturbed at this and told him that this can't be right. He said he'll call me back later. That evening he called me and said that he thinks that the previous broker put through my mortgage without declaring my children, he says that is the only way I would have been loaned the amount I was. He said that what he said is off the record and that he can't help me with my case.

I don't know what to do now. I haven't slept well for the past week worrying about this. Will the broker report me to the FCA? Should I tell the lender about this?

I would appreciate any thoughts on this please.

EDIT: Should I talk to the IFA firm to try find out what details were submitted in my application? I'm sure they should have the file since it's only 2 years ago?

amnblog

This wont come back to haunt you. Relax.


Lenders don't have the mechanisms to check previous deals routinely.




Also, we cannot be sure what was presented to the Lender in 2014, it may have been accurate as how Lenders calculate affordability changes all the time.

muhandis

I don't see any reason why the broker would run to the FCA. He was decent enough to explain what the problem might be, stopping you from inadvertently going to another broker or worse a lender.

In your place, I wouldn't contact the lender about this.

As for the fix ending, I would either look to do a non-advised product switch online or let it lapse to the SVR and overpay as much as possible until my affordability sorts itself out.

I know it's easier said than done, but imho there is no point digging into this any further. Good luck.

IAMworried_sick wrote: »

Will the broker report me to
the FCA? Should I tell the lender about this?

AnotherJoe

It does seem that you should go with a retention product from your current lender as that probably wont cause any further checks to be made.

IAMworried_sick

Thanks, that's a relief to hear!

I asked the broker about changed lending rules but he said that this was well after the latest set of regulation changes and that it's very unlikely that my lender (a high street bank) criteria has changed significantly since then.

Anyway, I'm going to try and forget this as best I can!

amnblog wrote: »

This wont come back to haunt you. Relax.

Lenders don't have the mechanisms to check previous deals routinely.

Also, we cannot be sure what was presented to the Lender in 2014, it may have been accurate as how Lenders calculate affordability changes all the time.

ACG

IAMworried_sick wrote: »

I asked the broker about changed lending rules but he said that this was well after the latest set of regulation changes and that it's very unlikely that my lender (a high street bank) criteria has changed significantly since then.!

It was April 2014 that the mortgage changes came in to effect.

However the Bnk of England brought in a 4.5x income cap which was implimented by the 1st October 2014. So assuming you applied before that date, you could well have been offered more than 4.5x income with a couple of lenders - Barclays were one of the more relaxed lenders on this I think. I think Natwest/RBS were also quite lenient.

I do not condone lying on applications and would never do itmyself as it is not worth losing my livelihood but you have your mortgage, you are happy and there is no evidence anyone has lied. Just hear say from a broker who can not get you a mortgage now. Who is to say they are not giving you a load of rubbish in order to try and save face?

The only way to know for sure would be to go to the firm who submitted your application and ask for a copy of the application form.

This is partially why we send a copy of the application form after submission but before completion, the customer can check everythign is correct.

IAMworried_sick

Many thanks for your reply. You're right, it might just be that the broker was talking rubbish.

I trawled through my emails and paperwork from the initial mortgage and can't seem to find anything which lists all the application details, just some bits which tell me how much money they were paid by the bank, their fee and a leaflet about complaints. I saw the broker in early Nov and completed a week before Christmas.

I know it's probably best to let things lie but I just won't have any peace of mind until I know for sure. With all the fraud prevention databases, I'm be scared of putting in details of my dependants on any lending application at all going forward.

I am considering contacting the IFA firm for a copy of my application form, but I'm just a bit worried about what to say if they ask for a reason. Do I have to give a reason or do they have to give it to me just because I ask?

ACG wrote: »

The only way to know for sure would be to go to the firm who submitted your application and ask for a copy of the application form.

amnblog

You can requested a copy of your file (without giving a reason) by law. The maximum they can charge you for producing that is £10.


Perhaps you should not do so however, it might only give you more to worry about!

muhandis

https://ico.org.uk/for-the-public/personal-information/

Subject to a few exceptions,you have the right to get a copy of your personal information from an organisation that processes it. They can charge you a nominal amount for it though and ask you to prove your identity.

I would just send a polite email (replying to an email from the old broker) asking for a copy of the original application form for your records. I don't see why they would mind sending it to you.

But again, my advice would be to not go there. What if you find out that he did indeed leave out your dependants?

IAMworried_sick wrote: »

Do I have to give a reason or do they have to give it to me just because I ask?

IAMworried_sick

You're right! I'll try move to a different product with the same bank and then let this be until after Christmas. If I'm still worried sick then, then I'll ask for the app form from the IFA.

Thanks for your comments.

amnblog wrote: »

Perhaps you should not do so however, it might only give you more to worry about!

muhandis wrote: »

But again, my advice would be to not go there. What if you find out that he did indeed leave out your dependants?

dimbo61

You already have a mortgage with one of the big high street lenders so I am sure they have a website you can check out " new deals for existing customers "
Look at your LTV or put in your details and the computer may automatically give you an estimate of what your lender now thinks your property is worth and outstanding mortgage balance !
Just see what deals are available and consider your families long term needs ?
Are you staying in your home for the next 2/3/5 years ?
Rates have never been this cheap and may start to rise.
Sign up for a new deal and enjoy Xmas