First time buyer, or maybe not - the question about consequences

[Deleted User]

Hello,

Lets imagine that during a mortgage application process in the UK bank my friend answered "no" to the question "do you own any other property?". Basically, he applied as the first time buyer. Probably, he thought the question is about properties within the UK only. Or maybe he forgot that over 10 years ago, he helped a family member to purchase a tiny flat worth less than £10k somewhere in Eastern European village. And he has never lived there himself.

Either way, the question is - what are potential consequences, if the bank/UK government finds out about that other property abroad?

Cheers!

Thrugelmir

Trust is permanently broken. What else has been forgotten? 

MovingForwards

Cahgpuc said:

Hello,

Lets imagine that during a mortgage application process in the UK bank my friend answered "no" to the question "do you own any other property?". Basically, he applied as the first time buyer. Probably, he thought the question is about properties within the UK only. Or maybe he forgot that over 10 years ago, he helped a family member to purchase a tiny flat worth less than £10k somewhere in Eastern European village. And he has never lived there himself.

Either way, the question is - what are potential consequences, if the bank/UK government finds out about that other property abroad?

Cheers!

Depends on how the 'friend' 'helped' with the purchase, without knowing that, no one can say what the 'consequences' are.

[Deleted User]

MovingForwards said:

Cahgpuc said:

Hello,

Lets imagine that during a mortgage application process in the UK bank my friend answered "no" to the question "do you own any other property?". Basically, he applied as the first time buyer. Probably, he thought the question is about properties within the UK only. Or maybe he forgot that over 10 years ago, he helped a family member to purchase a tiny flat worth less than £10k somewhere in Eastern European village. And he has never lived there himself.

Either way, the question is - what are potential consequences, if the bank/UK government finds out about that other property abroad?

Cheers!

Depends on how the 'friend' 'helped' with the purchase, without knowing that, no one can say what the 'consequences' are.

Technically, he owns that other property abroad.

MovingForwards

Cahgpuc said:

MovingForwards said:

Cahgpuc said:

Hello,

Lets imagine that during a mortgage application process in the UK bank my friend answered "no" to the question "do you own any other property?". Basically, he applied as the first time buyer. Probably, he thought the question is about properties within the UK only. Or maybe he forgot that over 10 years ago, he helped a family member to purchase a tiny flat worth less than £10k somewhere in Eastern European village. And he has never lived there himself.

Either way, the question is - what are potential consequences, if the bank/UK government finds out about that other property abroad?

Cheers!

Depends on how the 'friend' 'helped' with the purchase, without knowing that, no one can say what the 'consequences' are.

Technically, he owns that other property abroad.

There is no 'technically' he either does or doesn't own it.

If he owns it there are no FTB perks and claiming any would be fraud and potentially tax evasion.

Saying he owns no property when completing an application, when he does, is application fraud and a CIFAS marker is the consequence.

penners324

It's property not in the UK so would be irrelevant as far as UK mortgage lenders are concerned 

Bonniepurple

Found this on Gov.uk - it refers to Stamp Duty but I assume mortgages would be the same.

You must pay the higher SDLT rates when you buy a residential property (or a part of one) for £40,000 or more, if all the following apply:

• it will not be the only residential property worth £40,000 or more that you own (or part own) anywhere in the world
• you have not sold or given away your previous main home
• no one else has a lease on it which has more than 21 years left to run

davidmcn

Bonniepurple said:

Found this on Gov.uk - it refers to Stamp Duty but I assume mortgages would be the same.

SDLT is a tax you pay on purchases - whether or not a mortgage is involved is irrelevant. Even if the value of the other property is below £40k, it will still exclude a purchaser from claiming first time buyer relief.

I'm not sure why it would come up in a mortgage application unless the lender was concerned that you'd have some liability related to the other property.