Borrow your deposit

wotsthat

lisyloo wrote: »

No but if you have taken a loan recently for the exact amount of the deposit, then a PI is not required.

It's not the first time you have suggested something dodgy but most people are sensible enough not to commit fraud as a criminal conviction will affect job prospects and your life generally.

If people are being pushed into lying then it suggests risk/bubble to me.

I transfer all daily spending to a credit card and save what I otherwise would've spent to a savings account. I continue until it's a deposit sized sum.

I then get a loan to pay off the credit cards and apply for a mortgage. The lender asks me how I came by the deposit and I answer truthfully I saved it. What was the loan for? I answer truthfully it was to pay off credit cards which are now closed.

Yes it probably only works outside of London and, yes, it'll reduce the amount I can borrow BUT I'm now an official house hunter. Is it sensible? Not really. Has a lie been told? No.

My last house I borrowed the deposit and got a cashback mortgage where I used the cashback to pay the borrowings. Please pray for my soul.

wotsthat

Thrugelmir wrote: »

Far more boring than that. Algorithms do all the hard work. Experian make their real money by selling data not consumer credit reports.

Sounds like fantasy to me. At least now you must be content it's impossible to lie on mortgage applications now the lenders have gone CSI.

I think the probability is that lender algorithms are based somewhat on what you tell them with some details cross checked against the credit reference agencies. We're some ways from being able to apply for a mortgage by getting our retinas scanned.

System

.Where? My flat is £450k.

I'm 2hrs+ from London, 1 bed flat cost me 55k in 2011, extending lease and now selling (to upsize) for 65k

My personal advice to kids would be to save up while living with parents, and avoid the rent trap, that's what I did. However some people sadly are trapped and, while it is a lot of debt, its still cheaper and probably safer than renting, and someone nay be part of the way towards saving the deposit already. Desperate situations call for creative solutions - although this idea doesn't help the really desperate, with low affordability

System

Thrug -

. Global tax planning and UK mortgage lending simply isn't comparable

Its just an example of general dodgy accountancy which is oddly more acceptable for powerful multinationals than it is for individuals

lisyloo

wotsthat wrote: »

I then get a loan to pay off the credit cards and apply for a mortgage. The lender asks me how I came by the deposit and I answer truthfully I saved it. What was the loan for? I answer truthfully it was to pay off credit cards which are now closed.

Let's be clear then. When I say lie I am talking about people who say they didn't borrow the deposit when they did.
If you do a slow stooze and save the deposit then it's not lying and that wasn't what I was referring to - of course you have to declare the loans you have.

lisyloo

MatthewAinsworth wrote: »

I'm 2hrs+ from London, 1 bed flat cost me 55k in 2011, extending lease and now selling (to upsize) for 65k

You don't say where you live, but if you are within commuting distance of London and the flat is £65k then it sounds like it's not in a highly desirable area to say the least.
Perhaps that's still better than renting for a few, but it sounds like you are right at the bottom of the market and many people have much higher expectations (I'm not saying that they are right, but that they definitely do).

Anyway I'm sure if it makes sense people will have already done it or be doing it. Perhaps it works for a few.

ukcarper

lisyloo wrote: »

You don't say where you live, but if you are within commuting distance of London and the flat is £65k then it sounds like it's not in a highly desirable area to say the least.
Perhaps that's still better than renting for a few, but it sounds like you are right at the bottom of the market and many people have much higher expectations (I'm not saying that they are right, but that they definitely do).

Anyway I'm sure if it makes sense people will have already done it or be doing it. Perhaps it works for a few.

2hrs + from London is a long way Peterborough is only 1hr by train.

wotsthat

lisyloo wrote: »

You don't say where you live, but if you are within commuting distance of London and the flat is £65k then it sounds like it's not in a highly desirable area to say the least.
Perhaps that's still better than renting for a few, but it sounds like you are right at the bottom of the market and many people have much higher expectations (I'm not saying that they are right, but that they definitely do).

2+ hours to London is a large area which even covers some Northern Hell Holes™. £65k for a one bed flat round my way is easily achievable and nowhere near as undesirable as you think.

1hr 30mins by train to London. Season ticket £9k.

One of the reasons your flat is worth £450k is because there's a lack of people willing to commute 2+ hours.

ukcarper

lisyloo wrote: »

Not sure what your point is.
It's still commutable perhaps for someone who doesn't need to be in the office every day and it's still right at the bottom of the market even nationally.

Besides it does depend on where you are coming from. It can take up to 1 hour to get across London at peak times if you happen to live on the wrong side of London and your office isn't near a tube station which can certainly happen for couples or people who change job and have to take one is an unideal location.

What point were you making?

My point is that you can get a flat in a reasonable area 2hrs from London for £65k.

lisyloo

can you name some towns or provide some links to £65k flats in reasonable areas?
I'm sceptical but open to reviewing the evidence if it's provided.

The reason I'm sceptical is that I'd expect London commuter flats in reasonable areas to be priced much more highly.