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gruffydd

Boosting First Time Buyer Mortgages Through Fraud

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Just been speaking to a guy down in Swansea who has been requested to do this and that in order to get first time buyer sale. Think it went like this: friend accepts more than actual amount received for property, so first time buyer can borrow enough to purchase house. Vendor doesn't receive amount stated. Instead, received asking price. Anybody else come across this?

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would need a compliant solicitor as they have to notify the mortgage co of any discount.sol would end up in front of law society toute suite.

I'm sure such solicitors can be found.

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Over the last decade+, the only way FTB's have been able to "buy" property without "help" from Daddy/Grandparents, has been to resort to some kind of a

LIAR LOAN.

:rolleyes:

I thought they had tightened up. Obviously being naive.

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What I want to know is why the first time buyer wants to be in negative equity within the first month?? :unsure:

Fecking dummy tits running rampant in this country these days. They should be telling the seller/EA to stick the house up their ****. :lol:

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I'm sure such solicitors can be found.

why would a solicitor risk his lifetime income to help out a single purchasor?

tim

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What I want to know is why the first time buyer wants to be in negative equity within the first month?? :unsure:

He would not, and there is no need for a bent solicitor either. It does however very much require a buyer and a seller who trust each other rather a lot. BTW, this has been discussed several times before including as anecdotals, so it is probably done every now and then.

i) seller has a 200k house with plenty of equity that the buyer wants

ii) seller MEWs 50k and lends it to buyer.

iii) the buyer exchanges contracts using "his" deposit

iv) the buyer borrows the 200k "balance" from the taxpayer (or one of the few remaining privately held banks, but they would be careful)

v) the buyer completes, and the seller rips up the loan agreement

Now the taxpayer has a 100% mortgage on the books and has received just the additional stamp duty on the 50k for the trouble (possibly worth it if it were 50.001k but probably not otherwise). The chances are the buyer will also need SMI or (preferably) some housing at her Majesty's pleasure a bit later on.

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Mortgage lending is at less than 50% of what it was, before the credit bubble popped.

These levels are the best the nation can do, even with a 0% central bank rate.

Housing, mortgages, and conveyancing ARE the central pillars of the UK economy, sadly.

Of course there is going to be fraud. Man's gotta eat, even if it is an estate agent.

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Well, bearing in mind that a Swansea solicitor has recently received a long jail term for mortgage fraud I would have thought that anyone involved in dodgy property dealings would be trying to keep their head down?

I also hear rumours that the boys and girls in blue are still taking a keen interest in property related things - I hope they are.

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I recall builders doing this a few years ago when they wanted to mask the decline in house prices. You put the houses up for sale at £250k with a £100k cash back deal. The losers are the banks that lend to them since they end up loaning £250k on a £150k house.

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I recall builders doing this a few years ago when they wanted to mask the decline in house prices. You put the houses up for sale at £250k with a £100k cash back deal. The losers are the banks that lend to them since they end up loaning £250k on a £150k house.

Nah - the Banks make Millions £££'s in interest charges on all the other houses sold at a higher price!

Also a vile outright FRAUD by the builders/Surveyors/EA's (even solicitors are complicit collecting higher charges - though cleverly screened) who have then set a 'Precedent' price by which all the other houses on the estate are then sold at and the ripple knock-on effect of the higher price used to evaluate all other houses in that area by EA's only too pleased to see their bonuses shoot up as they whack another £100,000 on a house price estimate!

Edited by erranta

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I recall builders doing this a few years ago when they wanted to mask the decline in house prices. You put the houses up for sale at £250k with a £100k cash back deal. The losers are the banks that lend to them since they end up loaning £250k on a £150k house.

Here we go again.... :rolleyes:

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  • 312 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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