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http://www.bbc.co.uk/news/uk-scotland-glasgow-west-13688637
Not too sure how I feel about that story.
On one hand the guy didnt cost the bank any money in losses and people have been actively encouraged to lie in their mortgage application.
On the other by the letter of the law it is fraud.
What people have been actively encouraged, and by whom ?
(Hi George)
But lying is lying and fraud is fraud, and it's not like they gave the money to charity.
How did they make the mortgage payments, you have to wonder, if they didn't have adequate declarable earnings. Cash ??
lying on a mortgage application = fraud
Where's the problem? Did you lie on yours and are now waiting for the knock on the door?
He's a jake of the highest order and basically a gangster.
Lock him up 8)
Wasn't there a guy on The Apprentice who was a mortgage broker who encouraged people to lie?
I wonder if the bank made any money from the interest on mortgages.? Wouldn't that be classed as criminal proceeds?
Looking at their photo I couldn't work out which was the boxer.
When I was applying for a mortgage many years ago Northern Rock 125% mortgages under self-certification were quite common.
If i spent the 25% on a car whats the difference?
The 32-year-old millionaire and his wife
says it all for me
If i spent the 25% on a car whats the difference?
Well I guess if you defaulted on the mortgage then the bank would be left with an asset (the house) worth substantially less than the amount owed.
Well I guess if you defaulted on the mortgage then the bank would be left with an asset (the house) worth substantially less than the amount owed.
That would be the banks fault for loaning more than the value of the house. 125% mortgages are different than lying about earnings though.
For many years people have been brainwashed into believing that they MUST get on the housing ladder, and in doing so have exposed themselves to quite ridiculous financial risks.
Although in this case it looks like they based a business on the fraud, the full details are clearly not in the story but it does look much more than lying about income in order to get a place on a spiralling property market for fear of being left behind.
Covenant is not what was offered - not the security.
Does seem off, it's not as if they're making any effort to go after the 1000s of people who lied on self certification mortgages for their 'illegal gains'. Looks like they just want to get him and this is the best they have....
For many years people have been [s]brainwashed into believing that they MUST get on the housing ladder[/s] bloody well hating renting and working hard to pay someone else's pension
its not surprising people do lie considering the astronomical repayments in comparison to renting! yes you might have your 'own' home but you can rent very nice properties for the price you would pay for a mortgage!
I can see why people lie, I am looking at buying a bigger house with my partner, have over 130K equity, 12K deposit and we both earn a fair bit and the most we can borrow is 2.5x our combined salaries.
Seems mad really, as if we defaulted they have 142K's worth of equity to hang onto.
I have exaggerated my wages on many an application, so long as you make the repayments cant see where the problem is as the house is valued by mortgage co anyway?
its not surprising people do lie considering the astronomical repayments in comparison to renting! yes you might have your 'own' home but you can rent very nice properties for the price you would pay for a mortgage!
Until you want to retire and have to find rent money every month!
yes you might have your 'own' home but you can rent very nice properties for the price you would pay for a mortgage!
Isn't that essentially the problem - and why people 'must' get onto the property ladder. If their rent is equal to a monthly repayment on a mortgage, you may as well mortgage yourself so you at least get something back at the end ...
If renting was half the money ... different story.
I have exaggerated my wages on many an application, so long as you make the repayments cant see where the problem is as the house is valued by mortgage co anyway?
It increases the risk attached to the lending the money.
It increases the risk attached to the lending the money.
True but i would never have been able to buy a house otherwise, 20 odd years later i'm still in one! shows they can be too cautious
they must have known lying could get them into trouble
although why didnt the bank check up on this?
Seems like Hughes is a "flamboyant personality" who is "well-known". It's not like he's some nurse lying about the amount of overtime he gets so he can get a mortgage on his one bedder on a scheme.
Stabbing victim's feud with boxing promoter Barry Hughes
Dec 14 2008 By Derek Alexander, Sunday Mail
A STAB victim had a blazing row with millionaire boxing boss Barry Hughes minutes before he was knifed in a packed nightclub.
Chris Boyle was stabbed in the stomach and slashed across the face during a 21st birthday party...Hughes' right-hand man runs Braveheart Security while Bryce is in charge of Thor Security. Hughes was convicted of carrying a knife in a club in October and was forced to pay out £10,000 - a £5000 fine and a £5000 charity donation...
McDonald is at the centre of a feud with Hughes after he was blamed for the knife attack on Fitzpatrick.
http://www.dailyrecord.co.uk/news/scottish-news/2008/12/14/stabbing-victim-s-feud-with-boxing-promoter-barry-hughes-78057-20969082/
http://www.bernardomahoney.com/faces/barryhughes.html
We had to provide wage slips, p60s and bank statements for our recent mortgage application. It amazes me there was a time when they just took someone's word for it
For many years people have been brainwashed into believing that they MUST get on the housing ladder
Yes, but the alternative is renting which in the UK makes you a second class citizen. It's getting better, but 10 years ago, trying to insure your posessions (eg a mountain bike) if you were a tenant rather than an owner was hard work.
The reason that renting is not a long term viable solution in the UK is that whilst we could feasibly rent all the way up to retirement, many of us would not be able to afford UK rental prices on what our pensions are going to be.