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Alice H
Alice H, Solicitor/Partner
Category: Law
Satisfied Customers: 2850
Experience:  Partner in national law firm
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i have taken out three mortgages from three different lenders

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i have taken out three mortgages from three different lenders over a period of 16 years - i never told each lender about the other mortgage i had as i couldn't be bothered not trying to cheat just thought the process would be easire - each time i took a mortgage it was to buy a place to live in then i would move on and rent it - currently i rent two properties - i think i may have committed mortgage fraud though i did not know it at the time - how do i own up or what should i do to sort it out - whats the worse that can happen;
i have asked this question before but would like another experts advice

Hello and thanks for using Just Answer.

My name is ***** ***** am happy to assist you with your enquiry.

In respect of the 2 properties you rent out, have you notified the Lender and are these 2 Mortgages now on a buy to let basis?

Kind Regards


Customer: replied 3 years ago.

i now have consent from the lender to let the two rented properties - but they are not buy to let mortgages

My name is***** and I'm happy to help with your question today.
I am going to have a look at the previous question and answer session.
But why is this is an issue now?
Customer: replied 3 years ago.


its not an issue now as such - i just thought as someones partenr at work got done for mortgage fraud for faslifying income statements - i never did anything like that but it got me thinking when i applied for residential mortgages i never declared other residential mortgages at the time so just wondering as that seems like fradu to me


Ok understood..
Failing to disclose the existence of other mortgages is likely to amount to mortgage fraud.The definition of fraud in the Fraud Act 2006 covers fraud by false representation and by failure to disclose information where there is a legal duty to disclose. False representations can be made explicitly or implicitly and may occur even where you know only that the representation might be misleading or untrue.
Individual purchasers can commit mortgage fraud by obtaining a higher mortgage than they are entitled to by providing untrue or misleading information or failing to disclose required information. This may include providing incorrect information about:
other debt obligations e.g. existence of other mortgages
the sources of funds other than the mortgage for the purchase
the value of the property
the price to be paid and whether any payments have been, or will be made, directly between the seller and the purchaser
Whether any legal action is taken against you depends on each mortgage providers policy on this issue. But as a matter of law your actions do appear to amount to fraud.
You have a couple of options:
1 Do nothing. If you do nothing and meet the mortgage repayments then future action is unlikely - there is no guarantee but as I say action is unlikely;
2 Sell the propeties and repay the mortgages - this is no guarantee against legal actiin but it makes it less likely;
3 Tell the mortgage companies what's been going on in order to clear everything up and negotiate a position whereby no action is taken against you.
You really need to think carefully about your position. As a criminal lawyer my advice would be to say nothing and try and settle these mortgages as quickly as possible making future action less likely.
Happy to discuss further.
Customer: replied 3 years ago.

thanks alex - my plan was to move the buy to let properties to new lenders with buy to let mortgages to start a new mortgage and be honest - is that a good idea



You can do that and, of course, any information you give in your new applications must be truthful.
Getting rid of the old mortgages does not make you immune to an investigation for fraud but it makes the chance of the old mortgage provider investigating less likely.
My view is that the sooner you settle the old mortgages and remortgage the better it will be for you.
Many mortgages which have been obtained using false information go undetected and are usually repaid without incident.
The question is whether you want to start afresh with the likelihood of avoiding an investigation or have this hanging over you and worry that goes with it.
Alice H, Solicitor/Partner
Category: Law
Satisfied Customers: 2850
Experience: Partner in national law firm
Alice H and 2 other Law Specialists are ready to help you
Customer: replied 3 years ago.

out of interest - i did mention this to one of my lenders but they were just not bothered - they said the only thing i should have done was to let them know i had other properties on rent and also let the lenders know the property was on rent - that's the only issue they had with it - that i should have got consent to let earlier



That's good news.