Reply to topic  [ 19 posts ]  Go to page 1, 2  Next
HMRC to verify mortgage applications 
Author Message
Legend
User avatar

Joined: Fri Apr 24, 2009 2:02 am
Posts: 29240
Location: Guantanamo Bay (thanks bobbdobbs)
Reply with quote
Want a mortgage then you have to face this.

http://www.telegraph.co.uk/finance/pers ... tions.html

Quote:
Potential homeowners who apply for a mortgage could face a tax investigation as part of a new fraud prevention scheme.

A bit late. This should have been in place for years.

_________________
Do concentrate, 007...

"You are gifted. Mine is bordering on seven seconds."

https://www.dropbox.com/referrals/NTg5MzczNTk

http://astore.amazon.co.uk/wwwx404couk-21


Wed Aug 31, 2011 4:08 pm
Profile
I haven't seen my friends in so long
User avatar

Joined: Thu Apr 23, 2009 7:10 pm
Posts: 5490
Location: just behind you!
Reply with quote
Amnesia10 wrote:
Want a mortgage then you have to face this.

http://www.telegraph.co.uk/finance/pers ... tions.html

Quote:
Potential homeowners who apply for a mortgage could face a tax investigation as part of a new fraud prevention scheme.

A bit late. This should have been in place for years.

Decades really.

_________________
johnwbfc wrote:
I care not which way round it is as long as at some point some sort of semi-naked wrestling is involved.

Amnesia10 wrote:
Yes but the opportunity to legally kill someone with a giant dildo does not happen every day.

Finally joined Flickr


Wed Aug 31, 2011 4:12 pm
Profile
Legend
User avatar

Joined: Fri Apr 24, 2009 2:02 am
Posts: 29240
Location: Guantanamo Bay (thanks bobbdobbs)
Reply with quote
Yes especially before a property bubble occurs. I wonder what the reason for it starting now is?

_________________
Do concentrate, 007...

"You are gifted. Mine is bordering on seven seconds."

https://www.dropbox.com/referrals/NTg5MzczNTk

http://astore.amazon.co.uk/wwwx404couk-21


Wed Aug 31, 2011 4:28 pm
Profile
I haven't seen my friends in so long
User avatar

Joined: Thu Apr 23, 2009 7:10 pm
Posts: 5490
Location: just behind you!
Reply with quote
Amnesia10 wrote:
Yes especially before a property bubble occurs. I wonder what the reason for it starting now is?

At a wild guess, it could be irresponsible loaning of money by the banks and rampant fraud by people "desperate" to buy a house at any cost.

_________________
johnwbfc wrote:
I care not which way round it is as long as at some point some sort of semi-naked wrestling is involved.

Amnesia10 wrote:
Yes but the opportunity to legally kill someone with a giant dildo does not happen every day.

Finally joined Flickr


Wed Aug 31, 2011 4:38 pm
Profile
Doesn't have much of a life

Joined: Sat Apr 25, 2009 6:50 am
Posts: 1911
Reply with quote
More likely the rampant fraud by mortgage brokers desperate to flog loans to complete lemons.


Wed Aug 31, 2011 5:37 pm
Profile
Legend
User avatar

Joined: Fri Apr 24, 2009 2:02 am
Posts: 29240
Location: Guantanamo Bay (thanks bobbdobbs)
Reply with quote
bobbdobbs wrote:
Amnesia10 wrote:
Yes especially before a property bubble occurs. I wonder what the reason for it starting now is?

At a wild guess, it could be irresponsible loaning of money by the banks and rampant fraud by people "desperate" to buy a house at any cost.

I would totally agree to the later almost always, but at the moment the banks are being sensible and only lending to people who are likely to pay back. So that is not necessarily the reason now. I do hope that they keep this permanently so that it stops such fraud.

_________________
Do concentrate, 007...

"You are gifted. Mine is bordering on seven seconds."

https://www.dropbox.com/referrals/NTg5MzczNTk

http://astore.amazon.co.uk/wwwx404couk-21


Wed Aug 31, 2011 8:46 pm
Profile
I haven't seen my friends in so long
User avatar

Joined: Fri Apr 24, 2009 1:03 pm
Posts: 5041
Location: London
Reply with quote
Amnesia10 wrote:
Yes especially before a property bubble occurs. I wonder what the reason for it starting now is?

Well if you declair to HMRC that you earn £50K (and pay tax on that)
but
For your Mortgage application you say you earn £100K
then somewhere you are lying and either
hiding money for HMRC and so owe back tax
or
have fradulently filled in a loan application and so will go to prison

The choice as they say is yours

_________________
John_Vella wrote:
OK, so all we need to do is find a half African, half Chinese, half Asian, gay, one eyed, wheelchair bound dwarf with tourettes and a lisp, and a st st stutter and we could make the best panel show ever.


Thu Sep 01, 2011 11:08 am
Profile
Legend
User avatar

Joined: Fri Apr 24, 2009 2:02 am
Posts: 29240
Location: Guantanamo Bay (thanks bobbdobbs)
Reply with quote
hifidelity2 wrote:
Amnesia10 wrote:
Yes especially before a property bubble occurs. I wonder what the reason for it starting now is?

Well if you declair to HMRC that you earn £50K (and pay tax on that)
but
For your Mortgage application you say you earn £100K
then somewhere you are lying and either
hiding money for HMRC and so owe back tax
or
have fradulently filled in a loan application and so will go to prison

The choice as they say is yours

I totally support that reasoning. It should have been there for years. I think in the past the lenders were very slack in terms of lending criteria and so as you say fraudulent loans were given, but many people also did it as their only way of getting on the property ladder. The property owning democracy is over. Over the next few years prices will slump and its attraction as an investment will vanish. It never should have been allowed to get to such levels. Many people would not be facing homelessness if property prices had been stable. The whole property market has turned out to be a giant Ponzi scheme requiring more people to buy at ever higher prices to sustain them. With real wages stagnant in the UK since 2003 the property bubble was doomed.

_________________
Do concentrate, 007...

"You are gifted. Mine is bordering on seven seconds."

https://www.dropbox.com/referrals/NTg5MzczNTk

http://astore.amazon.co.uk/wwwx404couk-21


Thu Sep 01, 2011 11:23 am
Profile
I haven't seen my friends in so long
User avatar

Joined: Fri Apr 24, 2009 1:03 pm
Posts: 5041
Location: London
Reply with quote
Amnesia10 wrote:
I think in the past the lenders were very slack in terms of lending criteria and so as you say fraudulent loans were given, but many people also did it as their only way of getting on the property ladder.


I agree

Amnesia10 wrote:
Over the next few years prices will slump and its attraction as an investment will vanish. ..... The whole property market has turned out to be a giant Ponzi scheme requiring more people to buy at ever higher prices to sustain them. With real wages stagnant in the UK since 2003 the property bubble was doomed.


Unfortunatly with a very fixed supply and increasing demand (more single households, net migration in etc) there is increasing demand. This is fueling an increase in rents so although the large capital gains may have gone for the "buy to rent" people they are still making a very good return on thier investment by increasing rents (returns). This means that prices will stay stable for some time to come - personally I think they will stay static and so will be erroded by inflation rather than any dramatic falls

_________________
John_Vella wrote:
OK, so all we need to do is find a half African, half Chinese, half Asian, gay, one eyed, wheelchair bound dwarf with tourettes and a lisp, and a st st stutter and we could make the best panel show ever.


Thu Sep 01, 2011 12:58 pm
Profile
Doesn't have much of a life
User avatar

Joined: Wed Sep 16, 2009 8:42 am
Posts: 798
Location: land of the free, Bexhill-on-Sea
Reply with quote
I had to send the mortgage broker a form from the revenue which stated my declared earnings for the last three years. SA302 iirc. ps I am 1 month in yay.


Thu Sep 01, 2011 2:07 pm
Profile
Legend
User avatar

Joined: Fri Apr 24, 2009 2:02 am
Posts: 29240
Location: Guantanamo Bay (thanks bobbdobbs)
Reply with quote
hifidelity2 wrote:
Unfortunatly with a very fixed supply and increasing demand (more single households, net migration in etc) there is increasing demand. This is fueling an increase in rents so although the large capital gains may have gone for the "buy to rent" people they are still making a very good return on thier investment by increasing rents (returns). This means that prices will stay stable for some time to come - personally I think they will stay static and so will be erroded by inflation rather than any dramatic falls

Yes but we also have deliberately constrained supply. There are hundreds of thousands of empty properties which lie vacant. If these were forced into use again by council taxes being collected then these properties would cost their owners substantially unless they let them or sold them. This would bring back property into use.

Also a study in the US found that low property taxes were actually a factor in the property bubble. With lower property taxes people found that they had more money and so used that extra income to borrow even more inflating the property bubble. All that extra income saved was transferred straight to banks in higher loan repayments. So with lower property taxes were you actually any better off? No. It might have seemed that way with a higher property valuation but all it did was cause the borrower to become more reckless.

_________________
Do concentrate, 007...

"You are gifted. Mine is bordering on seven seconds."

https://www.dropbox.com/referrals/NTg5MzczNTk

http://astore.amazon.co.uk/wwwx404couk-21


Thu Sep 01, 2011 2:32 pm
Profile
What's a life?
User avatar

Joined: Fri Apr 24, 2009 10:21 am
Posts: 12700
Location: The Right Side of the Pennines (metaphorically & geographically)
Reply with quote
One thing that worries me about this:
In my experience, HMRC couldn't organise a piss up in a brewery! They're probably ruin the chances of many people of getting the house they want by mistake.

_________________
pcernie wrote:
'I'm going to snort this off your arse - for the benefit of government statistics, of course.'


Thu Sep 01, 2011 8:44 pm
Profile WWW
Legend
User avatar

Joined: Fri Apr 24, 2009 2:02 am
Posts: 29240
Location: Guantanamo Bay (thanks bobbdobbs)
Reply with quote
l3v1ck wrote:
One thing that worries me about this:
In my experience, HMRC couldn't organise a piss up in a brewery! They're probably ruin the chances of many people of getting the house they want by mistake.

Possibly but are people going to wait till the last moment to get a mortgage? If they did it in advance they will have a budget to work within.

_________________
Do concentrate, 007...

"You are gifted. Mine is bordering on seven seconds."

https://www.dropbox.com/referrals/NTg5MzczNTk

http://astore.amazon.co.uk/wwwx404couk-21


Thu Sep 01, 2011 9:07 pm
Profile
I haven't seen my friends in so long
User avatar

Joined: Thu Apr 23, 2009 6:58 pm
Posts: 8767
Location: behind the sofa
Reply with quote
I may have slightly exaggerated my earnings in order to get a mortgage. The broker positively encouraged me to do so. It went like... "I get overtime, I'm hoping for loads, and the car is worth 4K and there's my on-call payment and can I add expenses?" - the total was nearly double my actual pay.

However, I chose a fixed interest rate and repayments I knew I would be able to meet. It's less than the rent on a 1 bed flat in a cheap part of London...

_________________
jonbwfc's law: "In any forum thread someone will, no matter what the subject, mention Firefly."

When you're feeling too silly for x404, youRwired.net


Thu Sep 01, 2011 10:06 pm
Profile WWW
Legend
User avatar

Joined: Fri Apr 24, 2009 2:02 am
Posts: 29240
Location: Guantanamo Bay (thanks bobbdobbs)
Reply with quote
JJW009 wrote:
I may have slightly exaggerated my earnings in order to get a mortgage. The broker positively encouraged me to do so. It went like... "I get overtime, I'm hoping for loads, and the car is worth 4K and there's my on-call payment and can I add expenses?" - the total was nearly double my actual pay.

However, I chose a fixed interest rate and repayments I knew I would be able to meet. It's less than the rent on a 1 bed flat in a cheap part of London...

Yes but as long as you are still able to pay the mortgage, and with these low rates should be overpaying while you can, then it should not be a problem unless you plan on remortgaging.

_________________
Do concentrate, 007...

"You are gifted. Mine is bordering on seven seconds."

https://www.dropbox.com/referrals/NTg5MzczNTk

http://astore.amazon.co.uk/wwwx404couk-21


Thu Sep 01, 2011 10:20 pm
Profile
Display posts from previous:  Sort by  
Reply to topic   [ 19 posts ]  Go to page 1, 2  Next

Who is online

Users browsing this forum: No registered users and 12 guests


You cannot post new topics in this forum
You cannot reply to topics in this forum
You cannot edit your posts in this forum
You cannot delete your posts in this forum

Search for:
Jump to:  
Powered by phpBB® Forum Software © phpBB Group
Designed by ST Software.