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mortgage refused

Question

Hi All,
Any advice would be helpful. My wife and I are trying to buy a larger house for our growing family. We currently have a smaller place which we've owned for 10 years. We found a buyer for the place as well as a larger place. We applied for mortgage for the larger place with our current lender. Application's been turned down on the basis that we borrowed part of the notary fees through another lender (25%) and the remaining amount, which will be covered from the sale of our current house also needed to be shown but we could not do so as our buyer hasn't paid us yet (though they've signed the compromis and paid a 10% guarantee). I made enquiries with another lender who says I qualify for a mortgage with them (I didn't go into details about the refusal from my current lender). In order to try and ensure that I don't get a refusal from these guys, I want to pay off part of the 25% that I borrowed. My question is, have any of you been in a similar situation and if so, what would you recommend I do as I don't want to taint my record to the extent of being refused credit across Belgium. Thank you.
Steve

anon

You're trying to get a mortgage by deceit. At best the bank could say this was a simple mistake, at worst, you could be accused of attempted fraud.

Go to your bank, explain the entire situation, without withholding any information from them. They may consider giving you a bridging loan to cover the additional capital that you're waiting for from the sale of your existing house, but frankly from your description above, it is a complete dogs breakfast and I wouldn't be surprised if they refused that as well.

The idea that you can selectively tell banks about your financial situation in order to try and get a mortgage from them is fantasy land. There is a central register of credits in Belgium and the first thing any bank will do is check you against that and find that you have other undisclosed loans.

Aug 17, 2018 10:13
stevey7

I don't think you can read properly. There is no deceit of any kind. Get off your high horse.

Aug 17, 2018 13:30
J

What a mess.
You now risk being 10% out of pocket on the new place, forced to sell the old place and without a place to live.
I don't understand where this 25% to pay notary fees comes from. You don't have any fees at all until completion.
Go back to your Notaire and ask for help.

Aug 17, 2018 15:25
kasseistamper

You don't have to tell deliberate lies in order to be deceitful about legal/financial matters. Simply withholding information (I didn't go into details about the refusal) which might be relevant to help the second bank in coming to a decision is deceit.
And I hope your compromis had a provision to protect you if you cannot get a mortgage!

Aug 17, 2018 15:50
J

Oh - And you also have a "mortgage refusal" on your credit record at the Belgian National Bank. No way of hiding that.

Aug 19, 2018 10:11