subject: Always Provide The Correct Informatiion. When Applying For Secured Loans, Mortgages And Remortgages [print this page] Many applicants for loans of all sorts think that it will help their chances of obtaining the finance if they overstate their income, etc.
This happens to those applying for mortgages, remortgages, secured loans, personal loans, etc.
It is foolish to overstate earnings when filling in an application form for any kind of finance as your lies will only come out when you supply the original information.
When someone applies for a mortgage or remortgage, for example, the mortgage lender or broker must first complete what is known in the trade as a Fact Find, in which the prospective borrower must furnish information regarding his income, his financial outgoings, etc.
It is not only information regarding any loans, credit cards, etc.all your other outgoings are taken into account such as how much you spend on groceries,electricity, etc.
There is no point in augmenting income in order to obtain the remortgage or mortgage or to do the opposite as regards the outgoings, and state that they are less expensive than they in fact are.
This is because, if your application is accepted in principal on the information supplied, definitive proof will then be requested in the form of original wage slips to cover the last three months in addition to three months bank statements.
The wages will be carefully calculated, and as such, if you have increased your income on your application, the short coming will soon be discovered.
It is the same if you have lied about how much you put out on groceries, etc. because if for example. you have stated that your food bills only cost 80 per week and the bank statements show that 150 plus per week is being paid to a supermarket, your untruth will be discovered and your application could be declined.
Similarly, when applying for secured loans, there is no point in not telling the truth, the truth and nothing but the truth, as if you lie, it will soon become apparent
If for example, you have mortgage arrears or defaults, etc. Always give the correct facts about your credit rating as the truth will emerge when the lender or broker carries out a credit check with your permission.
Telling incorrect facts can result in your application being delined.
Therefore the best approach when applying for a morrtgage, a remortgage or a secured loan is to be totally honest.
