1st Time Buyers Mortgage - NO DEPOSIT

armal1988

Hope someone can help me out here, I have been looking for a mortgage as a first time buyer and all the major banks and lenders say I need at least a 10% deposit.

I found a company which say they offer mortgages with 'no deposit' or 'asissted deposits'.

I have since questioned there methods and how they can offer such a service. This is how it was explained;

The value of the flat is £100,000
The mortgage is for £85,000 from Halifax
GPA pay the seller £15,000 deposit via my bank account
Total offer is £100,000
Once transaction is complete the seller pays the £15,000 deposit back to GPA.
The true value of the deal is £85,000

I also quized them on the legality and was told it was fully on board with regulations and legally sound.

I have read several articles on schemes like this and many experts deem it a mortgage fraud.

Hopefully someone can help me understand if this is an illegal scheme or it is legit.

Thanks.

GMS

FRAUD.

Simple as that. Do not get involved.

I assume this would involve you making the application to the lender stating that the deposit is from your own funds? Clearly not true so a lie on the application.

Regardless of any fraudulent activity it would require the property to value at 100k when it is seemingly only worth 85k.

Future ability to obtain credit could be in serious doubt if you got caught up in something like this.

There are 100% mortgages available to FTB if a family member could assist with a charge on their own property. Speak to a REPUTABLE broker to see if it is possible

kingstreet

Ask Halifax. I'm sure they'd have a wonderful answer.

armal1988

GMS,

Thank you for your feedback, this was also my exact thoughts on the scheme.

I had submitted an offer for the flat, only as way to try and find out as much information as I could on the process. I will be withdrawing my bid asap.

Is there anyway to report this company?

armal1988

@ Kingstreet

Funnily enough Halifax is the lender they had my mortgage approved by!

betmunch

armal1988 wrote: »

@ Kingstreet

Funnily enough Halifax is the lender they had my mortgage approved by!

You put that in the OP mate!!!

KingElvis

Wow, I can smell the fish from here...you'd get rear ended by these people, no doubt there's some kind of up front "fee" to get this slimy turd of a ball rolling?

armal1988

betmunch wrote: »

You put that in the OP mate!!!

So I did!!! My bad.

armal1988

KingElvis wrote: »

Wow, I can smell the fish from here...you'd get rear ended by these people, no doubt there's some kind of up front "fee" to get this slimy turd of a ball rolling?

There was a lot of unexplained fees included which they would always avoid answering.

Please anyone let me know if there is any channels I can go down to report these people and stop them from conning anymore people???

kingstreet

Find the firm recommending this "arrangement" on the FSA register. If it is authorised and regulated by the FSA, you can report their activities. If enough complain, the firm will be targeted for more rigorous monitoring and enforcement activity;-

http://www.fsa.gov.uk/register/firmSearchForm.do

You could also contact Halifax directly (Mortgage Compliance) and tell them of this scheme. They cancel agencies of firms they believe are guilty of fraudulent activity.

poppy10_2

Is it this bunch of shysters?

http://www.glasgowpropertyagency.com/firsttimebuyer