Mortgage Application LIES
Discussion
http://news.bbc.co.uk/1/hi/programmes/file_on_4/70...
So, there'll be a whole lot of people going to jail then.
Who the HELL though it was OK to lie about their income on a mortgage application. Dumb asses.
With the market turning, prices dropping and the Ocean Finance options running out, there's a whole heap of tragedy coming, I reckon.
So, there'll be a whole lot of people going to jail then.
Who the HELL though it was OK to lie about their income on a mortgage application. Dumb asses.
With the market turning, prices dropping and the Ocean Finance options running out, there's a whole heap of tragedy coming, I reckon.
Edited by Vesuvius 996 on Tuesday 25th September 10:55
dumbass said:
One borrower whose real income was £25,000 told the BBC he was advised to double that on his mortgage application.
He got a loan of more than eight times his salary.
His monthly re-payments take up most of the family's income and he has been threatened with re-possession.
DohHe got a loan of more than eight times his salary.
His monthly re-payments take up most of the family's income and he has been threatened with re-possession.
Vesuvius 996 said:
http://news.bbc.co.uk/1/hi/programmes/file_on_4/70...
So, there'll be a whole lot of people going to jail then.
Who the HELL though it was OK to lie about their income on a mortgage application. Dumb asses.
With the market turning, prices dropping and the Ocean Finance options running out, there's a whole heap of tragedy coming, I reckon.
We're basically going to face similar problems to the Americans then?So, there'll be a whole lot of people going to jail then.
Who the HELL though it was OK to lie about their income on a mortgage application. Dumb asses.
With the market turning, prices dropping and the Ocean Finance options running out, there's a whole heap of tragedy coming, I reckon.
Edited by Vesuvius 996 on Tuesday 25th September 10:55
Self certification mortgages, commonly known as "Liar-loans".
Supposed to be targeted at self-employed workers but of course have been abused.
Since you are self certifying what incentive do you have to tell the truth?
No one goes to jail, you just have your house repossessed when you fail to make the payments since you don't earn enough to cover them.
Obviously in a rising house price environment you might be able to keep making the payments by remortgaging every now and again and releasing the equity to cash and using that for payments.
As house prices stall or fall you are royally fecked.
They aren't called "sub-prime" for nothing.
Supposed to be targeted at self-employed workers but of course have been abused.
Since you are self certifying what incentive do you have to tell the truth?
No one goes to jail, you just have your house repossessed when you fail to make the payments since you don't earn enough to cover them.
Obviously in a rising house price environment you might be able to keep making the payments by remortgaging every now and again and releasing the equity to cash and using that for payments.
As house prices stall or fall you are royally fecked.
They aren't called "sub-prime" for nothing.
Was reading this earlier and this part caught my eye:
Article said:
One borrower whose real income was £25,000 told the BBC he was advised to double that on his mortgage application.
He got a loan of more than eight times his salary.
His monthly re-payments take up most of the family's income and he has been threatened with re-possession.
I can't understand why anyone would be daft enough to do such a thing. It doesn't take an accountant to work out that pretending you earn more that you do will saddle you with a monster of a mortgage that you'll struggle to pay - regardless of what a dodgy adviser may tell you.He got a loan of more than eight times his salary.
His monthly re-payments take up most of the family's income and he has been threatened with re-possession.
Vesuvius 996 said:
With the market turning, prices dropping and the Ocean Finance options running out, there's a whole heap of tragedy coming, I reckon.
Many people probably dont know any better though, combine that with the fact many people struggle to get a mortgage you can see how it happens so easily. walm said:
Self certification mortgages, commonly known as "Liar-loans".
Supposed to be targeted at self-employed workers but of course have been abused.
Since you are self certifying what incentive do you have to tell the truth?
No one goes to jail, you just have your house repossessed when you fail to make the payments since you don't earn enough to cover them.
Obviously in a rising house price environment you might be able to keep making the payments by remortgaging every now and again and releasing the equity to cash and using that for payments.
As house prices stall or fall you are royally fecked.
They aren't called "sub-prime" for nothing.
The point is that doing this IS a criminal offence. It's Obtaining Pecuniary Advantage By Deception.Supposed to be targeted at self-employed workers but of course have been abused.
Since you are self certifying what incentive do you have to tell the truth?
No one goes to jail, you just have your house repossessed when you fail to make the payments since you don't earn enough to cover them.
Obviously in a rising house price environment you might be able to keep making the payments by remortgaging every now and again and releasing the equity to cash and using that for payments.
As house prices stall or fall you are royally fecked.
They aren't called "sub-prime" for nothing.
Don't you reckon that if the Banks start getting huge numbers of repos and don't recoup their money, that they won't press for criminal charges, so that they can then get their mitts on borrowers remaining assets?
MentalSarcasm said:
Vesuvius 996 said:
http://news.bbc.co.uk/1/hi/programmes/file_on_4/70...
So, there'll be a whole lot of people going to jail then.
Who the HELL though it was OK to lie about their income on a mortgage application. Dumb asses.
With the market turning, prices dropping and the Ocean Finance options running out, there's a whole heap of tragedy coming, I reckon.
We're basically going to face similar problems to the Americans then?So, there'll be a whole lot of people going to jail then.
Who the HELL though it was OK to lie about their income on a mortgage application. Dumb asses.
With the market turning, prices dropping and the Ocean Finance options running out, there's a whole heap of tragedy coming, I reckon.
Edited by Vesuvius 996 on Tuesday 25th September 10:55
It's extremely common, wouldn't surprise me if the majority of self-certs were inaccurate or inflated. Genuine self-certs from people like contractors who pay themselves in dividends are probably not the ones ruining it, it's these clowns that use self cert to get around the fact they'd never be able to borrow what they could based on their income.
Ahhh superb... I love when liars get caught out.
Like how people have 1 garage, but they somehow have 3 cars and a motorbike ALL insured as inside the garage. The same garage which has a pool table, a chest freezer and various other stuff in it.
Oh how they whine when they get caught, and it's like music to my ears
Like how people have 1 garage, but they somehow have 3 cars and a motorbike ALL insured as inside the garage. The same garage which has a pool table, a chest freezer and various other stuff in it.
Oh how they whine when they get caught, and it's like music to my ears
walm said:
Not sure if you noticed but Northern Rock was on the verge of bankruptcy last week. Very similar to the Americans already (and NRK is not even particularly sub-prime focused). Kensington was already bought for a song earlier this year I think - they were/are sub-prime.
Close to bankruptcy ....really?If they were I doubt whether the BoE would have propped them up.....Pickled Piper said:
This is not NEWS. It's old. It has been going on for years, often enouraged by mortgage sellers. Lenders turn a blind eye.
It only becomes a problem when rates go up, house values go down and the market falters. That will be about now then.
exactly.It only becomes a problem when rates go up, house values go down and the market falters. That will be about now then.
we've discussed it on here enough times.
and we all know that there are a fair few PHers who've probably done it too.
I wish i had fibbed to get a mahoosive mortgage 4 years ago, i would have 'made' loads more money.. and i'd legitimately be able to get the same level of borrowing now (based on current salary)...
Edited by baSkey on Tuesday 25th September 11:17
Vesuvius 996 said:
walm said:
Self certification mortgages, commonly known as "Liar-loans".
Supposed to be targeted at self-employed workers but of course have been abused.
Since you are self certifying what incentive do you have to tell the truth?
No one goes to jail, you just have your house repossessed when you fail to make the payments since you don't earn enough to cover them.
Obviously in a rising house price environment you might be able to keep making the payments by remortgaging every now and again and releasing the equity to cash and using that for payments.
As house prices stall or fall you are royally fecked.
They aren't called "sub-prime" for nothing.
The point is that doing this IS a criminal offence. It's Obtaining Pecuniary Advantage By Deception.Supposed to be targeted at self-employed workers but of course have been abused.
Since you are self certifying what incentive do you have to tell the truth?
No one goes to jail, you just have your house repossessed when you fail to make the payments since you don't earn enough to cover them.
Obviously in a rising house price environment you might be able to keep making the payments by remortgaging every now and again and releasing the equity to cash and using that for payments.
As house prices stall or fall you are royally fecked.
They aren't called "sub-prime" for nothing.
Don't you reckon that if the Banks start getting huge numbers of repos and don't recoup their money, that they won't press for criminal charges, so that they can then get their mitts on borrowers remaining assets?
Ahonen said:
...
I can't understand why anyone would be daft enough to do such a thing. It doesn't take an accountant to work out that pretending you earn more that you do will saddle you with a monster of a mortgage that you'll struggle to pay - regardless of what a dodgy adviser may tell you.
There are plenty people who don't understand money / numbers!I can't understand why anyone would be daft enough to do such a thing. It doesn't take an accountant to work out that pretending you earn more that you do will saddle you with a monster of a mortgage that you'll struggle to pay - regardless of what a dodgy adviser may tell you.
Remember a motoring fly on the wall documentary many years back where a young driver wrote off his Fiesta. He was surprised when he was told he still had to pay back the loan he took out to buy the car in the first place
!!!!!!walm said:
Not sure if you noticed but Northern Rock was on the verge of bankruptcy last week. Very similar to the Americans already (and NRK is not even particularly sub-prime focused). Kensington was already bought for a song earlier this year I think - they were/are sub-prime.
Err, no. Northern Rock hit problems because of the lack of liquidity in the markets. They weren't anywhere near bankrupty. Kensington were sold for $561 million, their problem was not their loan book but the fact that they were seen as sub-prime hence people were unwilling to lend to them. So neither were the same situation as the Americans, they were just victims of the American situation.Gassing Station | The Lounge | Top of Page | What's New | My Stuff