Investigation / Mortgage application form

Investigation / Mortgage application form

Didn't find your answer?

HAS ANYBODY BEEN REQUESTED TO SUBMIT A COPY OF MORTGAGE APPLICATION FORM I R
ARE REQUESTING THIS AFTER A FULL ENQUIRY AND NOT BEING ABLE TO FIND ANYTHING
SO FAR NOW WANT TO KNOW HOW CLIENT MANAGED TO GET A LARGE MORTGAGE IN THE
YEAR OF ENQUIRY ?

ANY HELP PLEASE THANKS
Anon

Replies (5)

Please login or register to join the discussion.

avatar
By Taxi
14th Nov 2005 13:30

I am not so sure that every application involves "financial
porkies", what I meant in my last paragraph is that an application contains estimates - such as those for household expenses, for instance. The applicant puts in their best estimates of their households's costs for the year. These figures are not audited.
Self-employed people and those on variable salaries also put in their best estimates of income. If you are paid on a variable commission, for example, it is very hard to project your actual income, and if you are going for a mortgage and your historical earnings are not high enough, then you can put in estimates for what you expect them to be in the future.
I see nothing wrong with that at all, indeed I have had to do exactly that in the past when I was silly enough to change careers and move house at the same time.
Obviously people can lie about their estimates, but most normal people do not, and it is very dangerous to assume that someone making any form of estimate is a cheat.

Back to HMRC, the value of the data on a mortgage application is probably only going to be of any significance to them if they have found that an SA return was totally based on estimates.
In that case an inspector may need to examine other information in order to make a reasonable judgement.

Thanks (0)
avatar
By martinfoley07
11th Nov 2005 20:36

...classsic Morton's fork job......
......so absolutely do not hand them over.

Nicki says hasn't seen one that overstates expenses,
-if only that were the case for not having seen one not overstate income.

If so, then
"ah ha, that's more than you've declared".
Well, I wanted a mortgage.
"ah ha, so you sign statements containing financial porkies"............

Thanks (0)
avatar
By michaelblake
13th Nov 2005 21:59

See TMA 1970 s19A

TMA 1970 s19A notes that the inspector


......may ....by notice in writing require the taxpayer,

(a) to produce to the officer such documents as are in the taxpayer’s possession or power and as the officer may reasonably require for the purpose of determining whether and, if so, the extent to which

(i) the return is incorrect or incomplete....


I think this must be taken to mean that the inspector can ask for documents or information that could prove that an entry shown on the return is either true or false. A statement made for the purposes of an application for a mortgage from a financial institution would seem to be outside these parameters. If the inspector thinks otherwise he should be asked to state why he believes that to be so, and ultimately would have to persuade the General Commissioners of his case. I suspect that if you challenge him along these lines he will back off.

Whether one should be acting for someone who is prepared to make false statements on a mortgage application (if that is what has happened) is of course another matter.

Thanks (0)
avatar
By AnonymousUser
11th Nov 2005 10:06

Yep....
Had a similar request for a copy of a mortgage application as part of an ongoing enquiry......

Told the Inspector we didnt have a copy (which was true) and asked exactly what part of my clients SA return this request related to. Inspector backed off immediately.

In these days of non-status mortgages, I feel the Revenue are really dredging the depths if they have to resort to this

Thanks (0)
avatar
By Taxi
11th Nov 2005 11:17

I won at the Commissioners over exactly such an issue
a few years back. The Commissioners decided that it was none of HMRC's business, as the entries on a mortgage application are for a mortgage application and not for an SA return.

In addition an application will by its nature contain estimates of household expenses etc. and I have never seen anyone overestimating their private costs for a mortgage company, little practical use to HMRC if they are trying to prove income statments.

Thanks (0)