Financial/ Mortgage Advisors and Confidentiality

User2410

Hi everyone,

I’m desperately hoping for some advice as I’m struggling to sleep over this.

I’m 22 years old and am in around 13k of debt. My parents are super keen for me to get on the property ladder and are wanting to be guarantors on a mortgage. I know I won’t get one/ much due to my debts but they are pushing me to go and speak to their financial advisor to ‘just see what I could get’ so we could go from a there.

My question is... if I go to see the advisor and tell him about my debts (which will obviously effect my borrowing capacity) is he bound be confidentiality? If he would simply just tell my parents that I can’t get one/ could only get very little I’d be happy to play along but I’m worried he will just tell them about all the debt I’m in and what debt that is... to make it clearly they have no idea about the debt.

If anyone has been in a similar situation or works in the industry I would be very grateful for your comments on the matter... as mentioned above I’m very stressed about it!!

Thanks in advance

amnblog

If I were dealing with you I would not divulge anything about your situation to your parents without your express permission, even if they have initially introduced me to you.

My belief is that any competent experienced colleague would have the same approach.

[Deleted User]

Regardless of any confidentiality from the broker, if they are going to be guarantors there is a very strong chance they will be given a copy of the fact find and suitability report so may as well just have an honest conversation sooner rather than later

BoGoF

To be certain you would make it explicit to any advisor that your debt is not to be divulged to your parents.

However I do think a more adult approach is required here. Tell your parents you are not yet in a position to buy a property and think about telling them why. By going through the charade of applying for a mortgage you are wasting everyones time.

davidmcn

I would be rather pee'd off if I discovered I had provided a guarantee to somebody who was trying to hide their other existing debts from me.

bigisi

Man up and tell your parents to mind their own business, you'll buy a property when you're good and ready and that's not now.

jashdown

Are your parents guaranteeing the mortgage as well as funding your deposit, or do you have your own deposit?

If it is your deposit you may not even need them to be involved depending on your income etc and credit history

It is a myth that you cannot get a mortgage as a FTB with debt. I'm proof of that.

kingstreet

The purpose of a 'guarantor' on a joint borrower, sole proprietor mortgage is to increase the overall borrowing power with another person's income.

It is possible even with your credit commitments, your parent's income gets you over the line for the amount you require. You find a property, make an offer and apply for a mortgage.

THEN they get a copy of the application paperwork and your plan falls apart.

Do not embark on this plan thinking you can keep this secret. Do it and tell the truth, or don't do it at all.

SonOf

My question is... if I go to see the advisor and tell him about my debts (which will obviously effect my borrowing capacity) is he bound be confidentiality?

GDPR applies and they cannot divulge your information to your parents unless you say so. However, you should also make it clear that you do not want your parents told. Just in case a "mistake" by thinking they are helping you if your parents were to contact them.

However, if they are to be guarantors on the mortgage, then it becomes more complicated as they could well see copies of forms that include information.

There is also the moral position which could cause problems later. Your parents are taking on this liability but you are not telling them the whole picture. You are putting their finances at risk through your deceit.

Be upfront with them and avoid all sorts of issues.

csgohan4

if a broker is aware your not going to proceed anyways and just doing it to appease your parents, you will find your list of brokers is going to be short

Be honest with your parents and avoid wasting everyone's time

User2410

Thanks for all of the advice.

If I’m going to be honest... my problem is that if I can’t get a mortgage my parents plan to proceed and buy the house on my behalf... acting as Landlord. As such, I’m pretty much forced into the ‘try yourself’ situation first which is why I asked about confidentiality, it’s not that I want to waste anyone’s time.

I’m so ashamed of the debt and I know it would be detrimental to my relationship with my family but I gather I’m pretty much out of options other than telling them or fighting to keep renting instead or buying after all of the responses.