Mortgage question

Never borrow more than you could comfortably afford without giving up the whole of your lifestyle so you can pay a mortgage. Remember, mortgage means 'debt until death' - if you take out one too big for you to reasonably handle then as soon as interest rates start to rise then you'll start to feel the pinch. I've never taken out more than 2.8% of salary. Your own circumstances should dictate what risks you want to take - for example, you may benefit from an annual bonus or having a guaranteed minimum pay rise every year.

If you simply moved the existing debt to another card or consolidation loan, it's likely the mortgage company would spot it when they performed another credit search. Your best bet is to ask a very trusting friend or caring relative to take on the debt by either loaning you the money or them taking out a 0% APR credit card and transferring the debt to them, until the mortgage is sorted and then transfer it back to yourself.

In message , John writes

You either have a tiny mortgage or a whopping salary.

Well I currently have 2x current salary but I can afford 3.5 times and most lenders seem to lend that despite your other outgoings. Nationwide seem to subtract your other commitments from your income and then times by 3.5. I was worried about getting in to trouble for signing to say I was paying something I might not. Am I right in thinking that I can't be done for fraud since I am still intending/able to make all my payments on time.

I think the lady FA in the Nationwide told you all you need to know.

I was told about a year ago by a building society that i could only remortgage to gain capital up to 75% of the current value of the property and this was the law? I didn't question her and still don't know if this really is law or was the building society policy. She did say that i could remortgage up to 90% of house value if i wanted to use the money for property repairs or pay off debts. I asked her if the society checked how you spent the money and she said no, so i changed my application to say property repairs and she said she could not accept my application because she knew i was lying. Useless tosser. So i went home and applied on the internet and got accepted.

FWIW something doesn't appear ok here. Why would you want to take out an extra 1.5% of your salary and not pay off your debts? You got some wonderful investment idea you wish to share.

As for the fraud thing i wouldn't worry about it, i think the signature is to protect the society about being sued for lending you the money when they should know better. If the worst does happen play the stupid ignorant nobhead, its a usual get out of jail free card with loads of sympathy but unfortunately no longer with the financial gain.

LOL.

There is no such law. Unfortunately many banks/building societies confuse 'law' with 'company policy', and this is a classic example.

Which, if her earlier statement had been true, would be breaking the law!

Nick

I'm not really sure what you mean here. I wanted to borrow 105k but because of my other outgoings I could only borrow about 90k. If I sign the form to say I will settle the other debts within one month of completion then I can borrow 105k. She implied that nobody would know if I did pay them or not and it is just to cover them.

She is telling you to lie on the form, because noone will find out.

It is just like the Mortgage Madness program, where people lied about income for self certification cases.

She is guilty of gross misconduct.