97TURBO

...is the mortgage lender likely to find out?

The wife has a small loan which is due to finish in September, but its enough to effect our overall borrowing, im wondering if i should not mention it to them.

Selling up to move to bigger property.

Steve vRS

Yes.

They'll do a credit check which will show up all your outstanding debt.

Same happened to us last year so I had to sign an agreement that the outstanding amount would be paid off before the mortgage amount would be granted.

Steve

nik52wrx

Credit checks are available that can reveal all your financial commitments so it depends upon how deep your lender digs.

jonc

I'm sure they'll find out when they do a credit check and it can affect the application. It would be irresponsible for the lender to lend money without first finding out the other commitments that the borrower may have.

thesyn

A good mortgage adviser should be able to swing it for you.

FlightMan

Correct. They're always happy to help a client commit fraud to blag a commission. Why not fake your income and get an IO mortgage whilst your at it?

speye91

Only if there is arrears on the Loan,don't bother if there is not.

nik52wrx

How do they know if there are arrears without checking?
I'd be surprised if they take the applicants word for it

Ennoch

The supplier of the original credit will provide information to the credit reference providers (experian etc) with details on the outstanding balance of the debit and how many times the loan has been in arrears, ie 1 month, then brought up to date, then 1 month, which slipped to two months etc. It's basically a full file of information which shows the level of debt and how good you've been at paying it on time. If it's never been in arrears and is minimal or towards the end of its life then they're unlikely to frown on it.

Steve vRS

No. You are wrong.

Steve

thesyn

Not at all, most lending criteria are guidlines and if clients come close to these then personal recommendation from a mortgage adviser may help.
No I am not in the financial services but this approach has helped me in the past but perhaps criteria were less stringent

nik52wrx

If they come close to the guidlines, then maybe they are very close to being out of their depth and should therefore do the sensible thing and not get someone to swing a mortgage that's possibly unaffordable.

PaulC72

Declare it but explain it finishes in September I always thought loans of less than 6 months were not counted but as you have 8 it would be best to check your FA would be the best person to ask TBH.

jonc

It's okay, if it all goes pear shaped, then just blame it on the bankers, it's their fault for lending the money!

fast bloke

If the loan has 8 months left to run, and the mortgage is unlikely to complete for a couple of months, a good advisor will put your case to the underwriters, that you can afford the loan and the mortgage for the 6 month overlap. Nothing to do with fraud.97Turbo - Yes - They will know about it

fast bloke

100% correct. Ultimately, we can be held liable to both the borrow and the lender if it goes **** up

classic Subaru Si

Where on earth does fraud come in to it??

EddScott

Step away from the Daily Mail sir!

Leslie

Ask that man of the night who was forced to resign from his job with Billy Liar when he was caught out having done exactly that. He managed to get away with it and do very well in the end.

Les