Loans

[Fiszi]

Can you go to prison for lying about your income or hours on a loan application?

[squarebear]

I wouldn't have thought so but it would be a pretty stupid thing to do. They ask those questions to make sure you can keep up the repayments.

By exagerrating your income you are more likely to be unable to pay and then you can say goodbye to whatever you have the loan secured on. Usually your house.

[amonty1144]

Yes you can, the offence is obtaining pecuniary advantage by deception. Punishable by a fine or jail.It will of course depend on whether you are charged by the police and the cps accept there is case to answer.

[Ethel]

Yes - maximum 5 years imprisonment.

[kempie]

Obtaining a pecuniary advantage by deception was a statutory crime created under English law by Section 16 of the Theft Act 1968. That offence was repealed by the Fraud Act 2006 (effective 15th Jan 2007).

A person who is guilty of fraud is liable-

(a) on summary conviction, to imprisonment for a term not exceeding 12 months or to a fine not exceeding the statutory maximum (or to both);

(b) on conviction on indictment, to imprisonment for a term not exceeding 10 years or to a fine (or to both).

[jaycee401]

What would happen if the loan (for mortgage purposes) had been paid back but it came out at a later date that the applicant had given false information

[Uzoma]

Although the mortgage is fully repaid, it may cause any other mortgages, loans or credit cards that are currently held to be investigated.

[EverClean]

It's fraud.

[jaycee401]

thort so. i know someone who never declared on a mortgage app that he already had a mtg secured on another property which was in arrears and negative equity. he only declared the address he had been living in for the past 5yrs which he rented. the lender obviously never checked him out properly. i know it sounds mean but he is giving me grief over something else and i am seriously considering 'dobbing him in' i just don/t know who i would dob him in to.

[dasherman]

I know a couple who lied about how much they earned on their mortgage application for a brand new 4 bed house they were planning on buying,and were found out!

They ended up losing their �5,000 deposit(which they probably remortgaged for anyway) and had to move into her mothers 2 bed council bungalow for 12 months - so 3 adults,2 kids,one dog and one cat must have been fun!

They spent most of the equity from the sale of their previous house on a Land Rover Discovery and a holiday to Florida and the house they ended up buying was the cheapest,grottiest house going.

So whether you go to prison or not,there's a good chance you'll be worse off one way or another - it's just not worth thr risk!

[jaycee401]

hi dasherman
i presume they were found out before they completed on the prop. this person (an ex of mine) actually got his mortgage and although he has now since sold the property he still committed fraud and if reported it would blacklist him, but would anybody be interested in this now, or as he as per usual got away with it.

[dasherman]

Hi Jaycee401

Yes,they were found out while the house was in the process of being built.

I doubt whether anybody would be interested in your ex now to be honest as far as the fraud was concerned,although by the sound of it he may well be liable to pay Capital Gains Tax.

If he owned 2 houses at the same time he would have had to pay CGT on the profit he made on the one that wasn't his main residence.

If this was the case,I'd should have a word with HMRC if I was you.