See how we can help

Get started online

Lying on a mortgage application

Written By:
Myles Robinson - Expert Finance Advisor

Posted: Feb 15, 2023

Lying on the mortgage application

Many people believe they have to lie on a mortgage application to get finance approval. Falsifying your application and committing mortgage fraud can lead to dire consequences.

This guide will explain why you shouldn’t give false information when applying for a mortgage. But, more importantly, it will also show why customers who work with the right broker won’t have to.

Continue reading to learn more about the best ways to not lie about your income, marital status, and other details to get a mortgage. As mortgage brokers, we can help you find a mortgage to suit your needs no matter what your financial situation is.

Use our online mortgage calculator as a guide for your monthly repayments now

We are expert mortgage brokers

We have access to over 200 lenders in the UK to get you the best rates

Get your Quote

Can you lie about a mortgage application?

It is not a good idea lying on a mortgage. Mortgage lenders now require stringent screenings when assessing applicants. They will request documents to verify your details and wage slips to prove income.

Even if you can conceal something from mortgage lenders in the initial phase of checks, it is almost certain that it will be discovered during the underwriting process.

It is not a good idea to lie during the mortgage application process. This would be considered serious mortgage fraud. This is illegal and could have serious consequences. Employment history and employment status will show up on the checks.

What are the possible consequences of lying about a UK mortgage application?

First, you are unlikely to be approved for a mortgage. To protect themselves from mortgage fraud, lenders and underwriters will be strict with financial or credit product background checks and assessments. If you tell a lie about the income, it will show up on your bank statements.

Criminal prosecution may be possible depending on the nature and extent of the lies you have told in your mortgage application. False information in a mortgage application can be considered mortgage fraud and is punishable by UK law.


Get started online

What could be my penalty for lying on mortgage application?

The penalty for lying about a UK mortgage application can lead to 10 years imprisonment. This is the average sentence for mortgage fraud. However, opportunistic fraud can result in a suspension or fine.

The circumstances surrounding the mortgage fraud will determine the exact penalty that you would face.

There are generally two types of crime: opportunistic or large-scale.

Opportunistic mortgage fraud can be seen as being the lesser of the two. To qualify for a financial product, an individual may lie or provide misleading information when applying for a mortgage.

Mortgage fraud would include the following:

This could include lying about…

  • Income
  • Identity
  • Employment
  • Financial obligations and debt commitments
  • The property’s value and the selling price

As the name implies, large-scale mortgage fraud is an illegal activity that involves more than one property. This type of mortgage fraud can be used to launder money through properties or for other illegal purposes by organised crime groups.

You are more likely to be sentenced if you are found guilty of mortgage fraud on a large scale.


Get started online

The reasons you shouldn’t lie during a mortgage application process

It is not advisable to lie to a mortgage lender during an application. You won’t be approved for a mortgage, and you could face criminal prosecution. However, there is a possibility that you may not have to lie to obtain a mortgage when going through mortgage brokers.

A mortgage broker is the best choice if you feel the need to embellish the truth or tell white lies to increase your chances of getting approved for a home loan mortgage.

Our experts can help you increase your chances of approval. They will match you up with the lender most likely to give you a mortgage based upon your real circumstances.

Prospective borrowers often feel the need to lie about their income, credit history, or outgoings to obtain a mortgage. But they don’t realise there is a vast market, and they can get the financing they need with the help of a specialist broker.

We provide a complimentary broker-matching service that can help you find the right expert for you.

Talking to an expert about your mortgage prospects before you apply will help you dispel any myths. This is the best and most honest way to increase your chances of a successful outcome.

What should I do if I have already lied about my mortgage application?

Any qualified expert will tell any applicant that if they have lied in a mortgage application, they should not submit it. You could be charged with mortgage fraud. You can contact your mortgage lender if you have already applied. They will need to know that the details must be changed before the application moves on to the next stage.

If you have submitted an incorrect mortgage application, a mortgage broker can give you impartial, tailored advice. A broker can help you rectify the situation. However, it is possible to get a mortgage if you talk to an expert before you submit your application.

Even if you don’t have the right broker, they can help you get a mortgage.

  • Earning a low income
  • A low deposit
  • High outgoings
  • Bad credit
  • You need a joint mortgage, but your partner has poor credit.
  • You are self-employed and have limited proof of income

You shouldn’t lie on your mortgage application to trick the lender into authorising your finance.

However, speaking with a broker across the market will increase your chances of a successful outcome regardless of your unique circumstances and financial situation.


Get started online

Lies about income in your mortgage application

The most common type of mortgage fraud is lying about your income when you apply for a mortgage. This would be classified as opportunistic fraud. Any misinformation would normally be flagged by the lender’s background checks and the underwriter’s reports.

Any white lie about income, no matter how small, will be considered. If the lender suspects you are involved in mortgage fraud, you will not be approved for a mortgage. You might even be prosecuted.

People lie about their income when applying for a mortgage because they believe they don’t have enough money to get the necessary financing. Many people have this misconception. A mortgage broker specialising in affordability issues will help them approve their application.

A mortgage broker can make your income more.

How can a broker help in such a situation? A broker can help you find a lender that will lend to your income. While most mortgage lenders limit their lending to 4.5 times your annual income, it is possible to find lenders that will lend 5 or 6 times your earnings.

Lenders will allow customers to add income sources to their loan applications to increase their earning potential and supplement their wages. These could include overtime, commissions, bonuses, and freelance work.

There are specialist mortgage lenders available for customers with low incomes. They will often consider workarounds if you don’t have the means to get your desired mortgage. A specialist low-income lender may be able to help you with your guarantor or family mortgage options so you can then afford the monthly mortgage repayments.

Some niche lenders offer low-income mortgage options and higher-income multiples, but you’ll likely need the assistance of a broker to locate them.

A broker can present your case to the right mortgage lender in the best light to maximise your chances of success.


Get started online

On a mortgage application, lying about marital status

They believe it will increase their chances of approval, people might lie about their marital status when applying for a mortgage. While there are many reasons they may believe this, they often do so because they believe they can hide credit problems from their spouse.

It is very dangerous to lie about any aspect of a mortgage application. This includes marital status. If you are considering this option and don’t think that you would be breaking the law is enough to discourage you, keep in mind that there may be mortgage options available for you without you falsifying any information.

You don’t need to get a joint mortgage if you are married. You can find workarounds such as sole borrower agreements or joint borrower agreements. Alternately, flexible lenders will evaluate joint mortgage applications based on their overall strength, even if one applicant has poor credit.

Talk to a specialist broker if you feel your marital status could negatively affect your mortgage application. They will help you explore all your options and find a solution to the problem.

Contact us today to begin a loan application.


On a mortgage application, lying about dependents or other financial obligations

People lie about their financial obligations and dependents because they believe they won’t get a mortgage. Although it is true that mortgage providers may limit their lending or refuse to lend to you if you have too much, there might be other options when speaking with a mortgage broker with several mortgage lenders.

When assessing your creditworthiness, a lender will consider your debt-to-income ratio. This number is expressed in percentages and tells lenders how much capital you have left after considering all your outgoings.

There is no one right way to determine how low your debt-to-income ratio should be to be eligible for a mortgage. You’ll notice that lenders have their discretion, and some may have a lower cut-off than others. Not all mortgage providers are equally willing to take on risk, this is a problem.

A mortgage broker, who is experienced in high-risk cases and knows which lenders are interested in them, can be a better option than giving false information about your income. We can help you find a mortgage specialist who will assist people with high debt-to-income ratios.

These experts have a solid track record in saving customers time, money, and possibly disappointment over the long term.

Talk to a mortgage broker now

Talk to a mortgage broker if you are concerned about getting a mortgage. Access to all the markets will increase your chances of success more than any number of white lies.

We provide a complimentary broker-matching service. This allows you to connect with a mortgage expert who can help you get finance, no matter your situation. We have trained and vetted all the brokers that we work with.

For a no-obligation chat, contact us now or make an enquiry online . We’ll match your request with a broker in the whole market.


Get started online