lied about income on self cert mortgage

pat101 · 15 November 2018 at 11:50AM

hello any advice would be helpful

2007 i took out a self cert mortgage for £180,000 paid 10% down lied about my income said i was earning £46000 per year broker knew what was going on as he help supply the accounts to show inflated income, broker has now been stuck off, tryed to make a claim with the fscs about miss sold mortgage was told i had a claim and was then refuse understandable
as of now ive paid the bank including deposit over £105,000 in interest only payments the house is now worth between £110 and £120,000 leaving me with a shortfall of about £50,000
how would i be able to get out of this mortgage ?
also i was able to buy another house a few years ago that mortgage was legit and now have equity on that house would that equity be liable against the shortfall
need advice as i have to get this sorted out
thanks

[Deleted User] · 15 November 2018 at 12:04PM

pat101 wrote: »

how would i be able to get out of this mortgage ?

By paying it off and hoping the lender doesn't find out you lied.

If selling the property isn't sufficient to clear it, you'll need to make up the shortfall. They're highly unlikely to turn it into an unsecured loan and would prevent you selling if you can't settle it.

obay · 15 November 2018 at 12:11PM

pat101 wrote: »

hello any advice would be helpful

2007 i took out a self cert mortgage for £180,000 paid 10% down lied about my income said i was earning £46000 per year broker knew what was going on as he help supply the accounts to show inflated income, broker has now been stuck off, tryed to make a claim with the fscs about miss sold mortgage was told i had a claim and was then refuse understandable
as of now ive paid the bank including deposit over £105,000 in interest only payments the house is now worth between £110 and £120,000 leaving me with a shortfall of about £50,000
how would i be able to get out of this mortgage ?
also i was able to buy another house a few years ago that mortgage was legit and now have equity on that house would that equity be liable against the shortfall
need advice as i have to get this sorted out
thanks

With respect, this is your fault for lying, and the broker for co-operating, this is no one's fault but yourselfs.

ACG · 15 November 2018 at 12:26PM

Your only way is to overpay on the mortgage to bring the balance down.

You lied, you committed fraud which could result in time behind bars - unlikely, but it is a serious crime.

You have explored your chances with the FSCS and the broker no longer exists so your options now are to either default and be liable for the shortfall in addition to interest and legal fees or to overpay on the mortgage or carry on and hope the price rises.

Theoretically yes you could lose your current home or at least have a charge against it if you handed back the keys on the original property. They could even make you bankrupt and claim the money from your property.

Mortgage_Adviser · 15 November 2018 at 12:27PM

pat101 wrote: »

as of now ive paid the bank including deposit over £105,000 in interest only payments

What do you mean including the deposit?

Your deposit has gone to the seller and not the bank.

Amst · 16 November 2018 at 8:15PM

Is this a joke? You lied and want compensating?

csgohan4 · 17 November 2018 at 8:54AM

To be fair to OP, at least they admitted they lied, albeit not to the bank, and unfortunately you have to live with the consequences.

tacpot12 · 17 November 2018 at 11:31AM

Is your mortgage an interest-only or a repayment mortgage? (You said that you had main £105,000 of interest-only payments, but your number's don't add up if it is an interest-only mortgage.)

lied about income on self cert mortgage

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