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BBC Investigatation - Mortgage Advisers

Last year when we visited Ealing, a house price hot-spot in West London, nine out of ten of the mortgage advisers we consulted recommended we should lie about our 30,000 salary, falsely boosting it to over 50,000 on our mortgage application form.

The effect of the lie was dramatic.

Instead of the 105,000 or so we could have raised on an honest mortgage application, suddenly we were being offered mortgages of around 185,000, giving us vastly more buying power to pump into the local housing market.

Full BBC Story

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Don't know how credible a BBC report is these days.

Reply to
Jane Tweedynn
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I still think they are rather missing the point, the main purpose of the salary multiples is to protect the borrower, not the lender. With self-cert they generally insist on an LTV limit and load the interest, and they don't especially risk bad publicity in repossessing if the borrower lied, so why should they worry? In any case the risk with a person in a normal job who exaggerates their income is unlikely to be much worse than with a self-employed person who honestly gets their guesstimate wrong. And in the bit of the program I saw they didn't seem to mention non-status mortgages where there's no question of lying anyway.

Reply to
Stephen Burke

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