Mortgage Joint Application

[kenjonbro]

A friend of a friend had a low income so used a relative on a higher income to get approved for mortgage (as a joint application)
The higher income relative does not pay any of the mortgage nor does he live at the property
Is this actually legal ?

[VHG]

I don't think it is legal.

But the biggest problem the friend on the low income will have is that the person on the high income can claim to be part owner of the house and get half the proceeds if it sold even though they contribute nothing.

[Gavmacp]

Also person on high income is responsible if other can't make payments.

[BRIGHT SPARK]

I cant see a problem with the mortgage...its no different to two people obtaining a mortgage and then one goes to work in another area and rents for a while.

[kenjonbro]

There is certainly an attempt to inflate income (Not sure how "naughty" inflating income is) but the higher income relative could be seen as a guarantor also ?

[BRIGHT SPARK]

The lender wont be bothered as in the event of default the property will be resold and the mortgagee(s) will be the usually be the losers.

[kenjonbro]

What about when Peter Mandleson got into trouble with that interest free loan ?Although different, it is a situation where someone has assisted the applicant in getting a better mortgage ?