Hypothetical question concerning staff and mortgages
Discussion
Your employee who is on £31000pa wants a mortgage and, encouraged by a broker, asks you to increase his/her salary to £40000pa for July and August, to produce payslips showing these amounts and to pay the correct (higher) sum into his/her bank account.
He/she will refund all the extra wages received immediately from another source (legitimate) and the pay amounts will be corrected in the months after the event to ensure that I am not out of pocket.
Any thoughts?
He/she will refund all the extra wages received immediately from another source (legitimate) and the pay amounts will be corrected in the months after the event to ensure that I am not out of pocket.
Any thoughts?
You are Bob Diamond AICMFP.
I find it astonishing that people genuinely need to ask for opinions on this.
Sure the chance of being caught is extremely slim but how on earth can you think it is somehow OK to commit an obvious fraud??
Did you miss the whole credit crunch thing?
You could probably read up on it.
Furthermore there is a REASON why lenders put a limit on how much they lend.
Something to do with one's ability to pay, but whatever, I need a bigger house and rates are going to stay low forever and my house will just go up in price so I can always remortgage to free up some cash.
I find it astonishing that people genuinely need to ask for opinions on this.
Sure the chance of being caught is extremely slim but how on earth can you think it is somehow OK to commit an obvious fraud??
Did you miss the whole credit crunch thing?
You could probably read up on it.
Furthermore there is a REASON why lenders put a limit on how much they lend.
Something to do with one's ability to pay, but whatever, I need a bigger house and rates are going to stay low forever and my house will just go up in price so I can always remortgage to free up some cash.

Dear Lord!
I'm a Mortgage Broker, and don't like to see colleagues out of work, but if this has been instigated by the broker which I suspect it has, he should be reported.
He doesn't deserve to work in the industry and is tarring the good work of the rest of us who are grafting to earn an honest living in an ever constricting market.....
I'm a Mortgage Broker, and don't like to see colleagues out of work, but if this has been instigated by the broker which I suspect it has, he should be reported.
He doesn't deserve to work in the industry and is tarring the good work of the rest of us who are grafting to earn an honest living in an ever constricting market.....
rlw said:
how best to refuse the request.
"No"That is all you need to say to him, end of conversation. As an aside what do you think is going to happen when he no longer has his temporary 33% pay rise to pay his new mortgage, as employees about to loose their homes don't normally have their minds on the Job. I'd be reminding him there is a reason he can't get the mortgage on his current "honest" salary.
Good luck

rlw said:
Your employee who is on £31000pa wants a mortgage and, encouraged by a broker, asks you to increase his/her salary to £40000pa for July and August, to produce payslips showing these amounts and to pay the correct (higher) sum into his/her bank account.
He/she will refund all the extra wages received immediately from another source (legitimate) and the pay amounts will be corrected in the months after the event to ensure that I am not out of pocket.
Any thoughts?
I think you should play along, but only if you can discuss it with the mortgage advisor. Record that conversation, send it to the regulator. IMO his advice is at an equal moral position to the "claim for whiplash, it's free cash" brigade - who we all agree are scum.He/she will refund all the extra wages received immediately from another source (legitimate) and the pay amounts will be corrected in the months after the event to ensure that I am not out of pocket.
Any thoughts?
Your employee is being advised to put himself in a potential world of hurt by some horrible t
t who wants a few quid commission. Punish him, Errol.<picture of brick top>
Thanks for the replies folks. Obviously I am not going to agree to the request but I was wondering how far any of you might push to make it possible. I can bring forward a payrise quite happily and even magic up a little bit of overtime - beyond that I can't see what I can do.
Just chatted to her on the phone. She has a firm mortgage offer from Nationwide based on her May & June payslips and the proposed increase from July, as suggested by the mortgage advisor. They have even booked the surveyor ffs.
Just chatted to her on the phone. She has a firm mortgage offer from Nationwide based on her May & June payslips and the proposed increase from July, as suggested by the mortgage advisor. They have even booked the surveyor ffs.
cashmax said:
I have done this kind of thing for a few of my guys, fraud my arse!
I simply paid my guys a bonus over 2 months. Nothing underhand, nothing against the law, no problem.
What I did not do, was ask for the money back or write a letter saying the rise was normal salary.
So you haven't done this kind of thing then.I simply paid my guys a bonus over 2 months. Nothing underhand, nothing against the law, no problem.
What I did not do, was ask for the money back or write a letter saying the rise was normal salary.
It's 100% fraud what the OP is refering to.
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