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Danielle Clements, Dispute Resolution and Litigation solicitor at Gorvins, spoke to The Independent in an article discussing parents who are at risk of committing fraud by lying to their banks about their childcare costs, because they worry they will not secure a mortgage.

Danielle, who has dealt with a wide variety of property disputes warned the the legal consequences are not always straightforward for this type of situation, and the ramifications could be far reaching as she advised:

“Worst case scenario would be that the parent could not then secure an alternative mortgage (as a result of the current breach) and the house could in theory be repossessed.  The breach would also be disclosed by the mortgage lender to credit reference agencies and, if possession is granted, details placed on the Council of Mortgage Lenders Possession Register which ultimately means it will affect the parent’s ability to obtain credit in the future.”

She went on to discuss the consequences of a successful mortgage application in these circumstances, which is technically considered to be mortgage fraud and therefore a criminal act, but should parents fear being sent to prison?

“Mortgage fraud in these circumstances is considered to be the least serious form of fraud and is unlikely to result in a criminal charge or custodial sentence. However, from a civil court perspective it is likely to put the parent in breach of the terms and conditions with the lender and strictly speaking, such a breach may entitle the mortgage lender to demand that the debt is repaid to it in full and to cancel the mortgage.”

If you have any questions or concerns and would like to speak to Danielle, or another member of our Dispute Resolution & Litigation team, call us on 0161 930 5151 or e-mail

Read the full article here