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Nelly

Unbelievable Self Cert Scam!

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Theres so much wrong with this its hard to know where to start.

I was doing a job for a bloke yesterday and he was telling me how he bought his house recently.

He saw a house for £130 000... he had a £20 000 deposit.

He told the vendor to say it was £150 000 and got a £150 000 mortgage.

He then put his 20 in, got the house for 130 and put the extra 20 (from the 150 mortgage) back in his bank.

Oh and he borrowed the initial 20, he said he had, from the bank saying it was for a van, but because it wasnt secured they made him pay £1700 insurance on the loan.

He said he used to 20 grand he got back to pay off the bank (van) loan.

Apart from the fraud on every aspect of this, its probably the most expensive way of going about the whole thing.

How much do you love this?

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Theres so much wrong with this its hard to know where to start.

I was doing a job for a bloke yesterday and he was telling me how he bought his house recently.

He saw a house for £130 000... he had a £20 000 deposit.

He told the vendor to say it was £150 000 and got a £150 000 mortgage.

He then put his 20 in, got the house for 130 and put the extra 20 (from the 150 mortgage) back in his bank.

Oh and he borrowed the initial 20, he said he had, from the bank saying it was for a van, but because it wasnt secured they made him pay £1700 insurance on the loan.

He said he used to 20 grand he got back to pay off the bank (van) loan.

Apart from the fraud on every aspect of this, its probably the most expensive way of going about the whole thing.

How much do you love this?

Instant negative equity, and a very expensive van. People think they've been clever doing this sort of thing, but why should the banks care? It's more business for them.

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If I were the vendor I wouldn’t get involved in anything like that, are there idiots walking around like that? Don’t recommend his solicitor

Couldn't the vendor plead ignorance? Seems like getting an extra £20k or not much effort.

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Theres so much wrong with this its hard to know where to start.

I was doing a job for a bloke yesterday and he was telling me how he bought his house recently.

He saw a house for £130 000... he had a £20 000 deposit.

He told the vendor to say it was £150 000 and got a £150 000 mortgage.

He then put his 20 in, got the house for 130 and put the extra 20 (from the 150 mortgage) back in his bank.

Oh and he borrowed the initial 20, he said he had, from the bank saying it was for a van, but because it wasnt secured they made him pay £1700 insurance on the loan.

He said he used to 20 grand he got back to pay off the bank (van) loan.

Apart from the fraud on every aspect of this, its probably the most expensive way of going about the whole thing.

How much do you love this?

In a strong bull market, such moronic deals can be hidden by rising prices. The tide is now going out and I suspect that we will find the beach littered with every kind of loan abuse imaginable.

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He has not got anything, but extra debt and a very nasty court case in the offering.

If anyone thinks the banks will look the other way for ever, think again. When it starts to fall apart the little guy (crook) will get well and truely fleeced.

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Here is a case that appeared in a local paper a few weeks back. I would imagine alot of people are potentially in the same boat as this former PC judging by the enormous amounts people have been given as mortgages in recent years?

A Former Llanelli policeman has been given a suspended prison sentence for a £160,000 mortgage fraud. John Thomas resigned from the Dyfed-Powys force shortly before he appeared at Swansea Crown Court yesterday
Thomas, who now lives in Bristol, falsely claimed he was earning more than £46,000 a year and lied about a business run by his wife

http://www.thisissouthwales.co.uk/displayN...e=sidebarsearch

http://www.thisissouthwales.co.uk/displayN...e=sidebarsearch

Edited by The Masked Tulip

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Here is a case that appeared in a local paper a few weeks back. I would imagine alot of people are potentially in the same boat as this former PC judging by the enormous amounts people have been given as mortgages in recent years?

http://www.thisissouthwales.co.uk/displayN...e=sidebarsearch

http://www.thisissouthwales.co.uk/displayN...e=sidebarsearch

Link posted twice to make sure we don't miss it. Cheers! :P

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He has not got anything, but extra debt and a very nasty court case in the offering.

If anyone thinks the banks will look the other way for ever, think again. When it starts to fall apart the little guy (crook) will get well and truely fleeced.

Good grief! The mortgage fibs have been treated as a criminal offence. Surely the best thing for people to do in a similar position is to sell off their properties as quickly as possible and before the truth emerges.

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Suspended prison sentence?

Wow, that's a real deterrent.

and a criminal record for fraud..

That wil make getting a job quite interesting ever again..

think about that..

loose your home

unable to find work..

explaining a criminal conviction...

You lied... your now in negative equity...

You have to pay of the loan..

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and a criminal record for fraud..

That wil make getting a job quite interesting ever again..

think about that..

loose your home

unable to find work..

explaining a criminal conviction...

You lied... your now in negative equity...

You have to pay of the loan..

I wonder how much we'll see "I didn't really realise there was anything wrong with it. It was the mortgage advisor that suggested it!!! Get him in court too!".

This is the second time I've said this today, but I think apom is bang-on with his thoughts about the whole self-cert mortgage fraud and I can see it being the next* misselling scandal.

* next in the sense of generally acknowledged in the public realm, even though we already know it's going on all the time.

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Theres so much wrong with this its hard to know where to start.

I was doing a job for a bloke yesterday and he was telling me how he bought his house recently.

He saw a house for £130 000... he had a £20 000 deposit.

He told the vendor to say it was £150 000 and got a £150 000 mortgage.

He then put his 20 in, got the house for 130 and put the extra 20 (from the 150 mortgage) back in his bank.

Oh and he borrowed the initial 20, he said he had, from the bank saying it was for a van, but because it wasnt secured they made him pay £1700 insurance on the loan.

He said he used to 20 grand he got back to pay off the bank (van) loan.

Apart from the fraud on every aspect of this, its probably the most expensive way of going about the whole thing.

How much do you love this?

This seems a very odd thing to do and I don't understand why if he was able to borrow 150k to buy a 130k house did he need to put his 20k in. Self-certs certainly tell porkies about their level of income but in this case he appears to have been able to find a dodgy solicitor, incompetent lender & valuer for the lender all at the same time.

I think what probably happened was that he got a 130k loan on what the lender thinks is a 150k property and he just paid back the 20k for the van loan, the original scenario just does not compute, sorry!

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Guest tenant super
I wonder how much we'll see "I didn't really realise there was anything wrong with it. It was the mortgage advisor that suggested it!!! Get him in court too!".

This is the second time I've said this today, but I think apom is bang-on with his thoughts about the whole self-cert mortgage fraud and I can see it being the next* misselling scandal.

* next in the sense of generally acknowledged in the public realm, even though we already know it's going on all the time.

Anybody seeking to blame their purchase of a product called a self certified mortgage on a third party might as well go round with a t-shirt saing 'Look at me, I'm a moron'. They'd be laughed out of court.

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I find it hard to believe that the surveyor looked at the house and allowed the bank to lend him so much for a house thats overpriced- Sounds like BS to me - Its not financially clever and I can't see the bank borrowing that amount on a declining asset??????? :blink:

Edited by teddyboy

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With a self cert you have to give a hefty deposit, that was the 20 000

He didnt want to pay a deposit, he wanted a 100% loan, (couldnt get it as he is self employed) so the 20 he put in as deposit he got back as the 150 grand house was only 130.

Still lost 1700 on the loan insurance though

I reasonably sure is not bs just by the way he told us.

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With a self cert you have to give a hefty deposit, that was the 20 000

He didnt want to pay a deposit, he wanted a 100% loan, (couldnt get it as he is self employed) so the 20 he put in as deposit he got back as the 150 grand house was only 130.

Still lost 1700 on the loan insurance though

I reasonably sure is not bs just by the way he told us.

Not picking a fight Nelly but just trying to get it right.

You said 'He told the vendor to say it was £150 000 and got a £150 000 mortgage.'

At what point would he need his original 20k van loan if the mortgage was already 20k more than the total purchase? He may have needed some of it to get it to exchange but using your sums he should have got 40k back.

Unless you meant 'He told the vendor to say it was £150 000 and got a £130 000 mortgage.' which tallys with not being able to get a self-cert 100% mortgage for a 130k house but all fits when the house is valued at 150k and sold for 130k.

But whatever he did wasn't very smart.

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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