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BTL "fraud"
Comments
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Do you think Ive "pushed prices up" by doing this.
I think we all agree there is a demand for houses.
The type of house you can afford to buy at any time depends on your income, existing debt and size of deposit.
In a simple example, 2 people work together and have the same salary, savings and debt.
They both see a flat they like it is £100K. Other people who like the flat earn less than them and would have to make an offer below the asking price.
The 2 runners for this flat, know there is competition. One offers full asking price. The other lies on the mortgage application and offers £5K over the asking price and buys it.
An identical flat comes up for sale. The EA knows the last one went for £105K and adjusts the asking price accordingly.
mom HPI for this flat is 5%.
I know this example is very simplistic but you get the general idea.
My answer to your question would be that if " bending the truth" allowed you to borrow more than you could naturally afford then yes, I think you have contributed to pushing up prices.
Take a look at this from over 3 years ago
http://news.bbc.co.uk/1/hi/business/3222053.stm0 -
My answer to your question would be that if " bending the truth" allowed you to borrow more than you could naturally afford then yes, I think you have contributed to pushing up prices.
but in fact, I COULD afford it, as I continued to pay my parents back and paid the mortgage.
in any case - if I hadnt had the loan from my parents, but took a loan out of 4k after Id exchanged- would it have really been any moe or less affordable.
no one legislates at all affordability AFTER youve had your mortgage agreed- or do they:beer: Well aint funny how its the little things in life that mean the most? Not where you live, the car you drive or the price tag on your clothes.
Theres no dollar sign on piece of mind
This Ive come to know...
So if you agree have a drink with me, raise your glasses for a toast :beer:0 -
If you have to pay it back then yes you have lied, committed fraud and pushed up prices (presumably you've been able to spend £4k more than if they had not lent you the money).
If however there is no legal agreement on paying it back (well pay it back if you like, when you can) then probably you could treat it as a gift . the key point from the lenders point of view is whether or not it is a 'financial commitment', so an obligation and agreement to pay £100/month would be a commitment while a voluntary understanding to pay it back if and when you like is not a commitment as such.I am a Mortgage Adviser
You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
If BTLs are committing fraud by stating falsely that their BTLs are their first homes to avoid paying tax, then I do object to this and hope the law will come after them. I pay tax - why shouldn't others?
When tenants give false names to utility company's or catologue company's and flit off without paying LL's what is this called?0 -
pickles110564 wrote: »When tenants give false names to utility company's or catologue company's and flit off without paying LL's what is this called?
What's your point?0 -
pickles110564 wrote: »When tenants give false names to utility company's or catologue company's and flit off without paying LL's what is this called?
Running a business. LLs should build it into their business plan.0 -
I thought this site was about saving money; not encouraging people, BTL's or renters to steal or cheat.
If a lender asks you to inform them of all your outgoings, earnings, and where the deposit came, from you are legally bound to tell the truth.
Should you obtain a loan by making false statements it would normaly be treated by the Police as Fraud. If you lie about where the deposit came from i.e. it was a loan, when the mortgage provider does not allow this it may be treated as 'obtaining a pecuniary advantage'.
Both offences are punishable by imprisonment.Lic.0 -
If house prices ever fall so reposessions become more common, I think we'll be surprised by the number of people who have used self-cert etc to finance BTL. I did a poll a while back on it and a lot of posters (significant minority) seemed to be of the opinion that it was fine to commit fraud to finance a BTL empire.Surely the only person that will be harmed by the above is the person borrowing, so it's fine to lie as long as you don't want sympathy when things go wrong!In this case YES! The rules are supposed to be there to protect the borrower. If he knows what he is doing and is willing to take the chance, including the loss of his deposit if prices fall then WELL DONE YOU! These rules are manipulated( 3 x 5 x 1 20 years etc)so much by the banks Im surprise dthey even bother with them now.
HE WHO DARES WINS.......0 -
Generali, why are you so up tight about BTL'S & people buying property???
You're always kicking up a fuss! 0 -
Uncle_Fester wrote: »Generali, why are you so up tight about BTL'S & people buying property???
You're always kicking up a fuss!
Because he has not got the b@lls and has the green eyed monster he has to knock hard working homeowners/LL's.0
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