CIFAS MORTGAGE MARKER

Falcon61

My daughter had income details in increased for a mortgage application, Nationwide the lender registered the fact in 2018, the mortgage was completed in 2016, will this marker automatically be deleted after six years? and if so six years from the date the property was bought or six years from the date it was noted by the lender?  Has anyone experience of the lenders being sympathetic to removing these earlier?  All payments have been made etc

[Deleted User]

6 years from being placed on CIFAS. It's very unlikely you would get it removed unless it was a mistake (this is a good thing).

Falcon61

OK are you sure its 6 years from the date recorded not the date of the mortgage completion?

Thrugelmir

Be 6 years from recorded date. Unfortunately fraud of any kind is taken very seriously. Hence why the data is shared between lenders. 
What brought the matter to light? 

Falcon61

She applied for an additional Bank account with Lloyds, who opened the account and shortly after closed the account, but weirdly she still holds two current accounts, a personal loan and a credit card all with Lloyds which have remained unaffected.  She checked CIFAS upon advice and found out the issue

[Deleted User]

In reality with a CIFAS fraud marker she is lucky they have not closed all her accounts, terminated her mortgage and repossessed the property. It is six years from when the marker was added to her record, she will need to keep her head down for the next four years, not try to open any new accounts or remortgage (which will almost certainly mean her mortgage will be terminated). 

Fighter1986

You can't reposes someone's house off the back of a CIFAS marker; a CIFAS marker doesn't constitute a breach of the mortgage contract. It'll make re-mortgaging nigh on impossible, mind.

I'm confused though - her lender knew she'd lied on her application yet gave her the mortgage anyway?

[Deleted User]

Fighter1986 said:

I'm confused though - her lender knew she'd lied on her application yet gave her the mortgage anyway?

I suspect that they didn't at the time, but some other information came to light in 2018, which is when the CIFAS marker was added which which gave them information that showed fraud had taken place. 

Fighter1986 said:

You can't reposes someone's house off the back of a CIFAS marker; a CIFAS marker doesn't constitute a breach of the mortgage contract. It'll make re-mortgaging nigh on impossible, mind.

I was under the impression that as the original application was now deemed fraudulent (hence the marker) they would be within their rights to terminate the mortgage should they wish?

Fighter1986

The lender would have to do far better than that to kick someone out of their house while their mortgage was up to date. 

It wouldn't act in the lenders favour anyway. It would cost them a lot of money and they'd auction the house off probably for less than the outstanding mortgage balance. The lender would end up out of pocket. While the mortgage is up to date, whats the point?

But certainly a Cat 4 CIFAS marker would cause a lender to look more closely at an application.

Depending on the situation, a Cat 4 CIFAS marker might simply cause a lender to look more closely at evidence provided and ask for more proofs under future applications for a mortgage; and can cause applications made online to be thrown out. 

Awolf

This has occurred to me. In 2017 I was attempting to port a mortgage with Nationwide which I had taken out in 2016, this porting was declined and I subsequently applied to Santander who declined me also, they advise I look at National Hunter which revealed that Nationwide has put a 'refer' status on the application I made in 2017. None the less, I wasn't deterred and never found out what the issue was, subsequently I got a mortgage 4 months later with Leeds and have since received numerous loans (around £20k) and credit cards which consistently have their limit increased. 

This issue has recently arisen again whilst attempting to open a business account with Barclays which was declined due to National Hunter. After contacting Nationwide they advised I apply for my CIFAS data which I received today and it has application fraud for a second employment I had when I applied in 2017. My query now is, how did I get a subsequent mortgage, good APR loans and credit cards over the last 3 years without any issue at all if this CIFAS marker has been there all along? Very strange (I must note, in these subsequent loans and credit cards etc I never mentioned the second employment, would this have had an effect?)

Also, will this be removed in 3 years automatically (half way through the 6 year period), do you think there is any hope that if I contact Nationwide to have this removed as I am now self employed so no employment or potential fraud they suspected at the time would even be applicable now? 

Thrugelmir

Falcon61 said:

She applied for an additional Bank account with Lloyds, who opened the account and shortly after closed the account, but weirdly she still holds two current accounts, a personal loan and a credit card all with Lloyds which have remained unaffected.  She checked CIFAS upon advice and found out the issue

Doesn't explain what subsequently came to light with the Nationwide. One assumes was an interaction between the lender and your daughter.