Mortgages

Let property campaign: your guide to making a disclosure

The Let Property Campaign is an opportunity for landlords who owe tax through letting out residential property, in the UK or abroad, to get up to date with their tax affairs in a simple, straightforward way and take advantage of the best possible terms.

If you’re a landlord and you’ve undisclosed income you must tell HMRC about any unpaid tax now. You’ll then have 90 days to calculate and pay what you owe. This guide explains how you can do that.

For more details and guidance “Click Here”

FSA warns of mortgage fraud on quick property sales

Homeowners in mortgage arrears or facing repossession may receive an offer to buy their property for a discounted price in exchange for a quick sale. But the FSA warns these deals sometimes involve fraud which could lead to homeowners being prosecuted or losing housing benefits.

“Some homeowners facing financial difficulties may want to sell their property quickly to ease distress, or perhaps avoid repossession, and put the problems behind them.

“Some companies and individuals offer to help do this by buying the property at a discounted price in exchange for completing the deal quickly. The discount is often around 20% and can be as much as 35% below the market value of the property.

“The buyer may call these ‘below market value’, ‘BMV’ deals or ‘distressed property sales’.

“These offers may include a promise to complete the deal within as little as 48 hours, pay the sum in cash, help you avoid legal and estate agent fees, and guarantee the sale.”

Fraud in false sale prices

“We are aware that some quick and discounted property sales involve fraud, where the buyer asks the seller to state that the property is being sold for the full market value rather than the discounted price agreed.

“This is usually done so the buyer can borrow the full amount they have agreed to pay for the property from a mortgage lender, but the lender thinks they have paid a deposit for the property. In the current market, mortgage lenders will not lend the full amount needed to purchase a property and will require a sometimes substantial deposit. The bigger the deposit paid by the borrower, the more likely their mortgage application will be approved and the lower the interest rate charged.

“For example, if the buyer is paying £120,000 for a property they might not be able to borrow the full amount they have agreed to pay, even if it has been valued at £150,000. However, by telling a mortgage lender they are buying the house for £150,000 but only need to borrow £120,000 (or 80% of the inflated price), the buyer may be able to access some or better mortgage deals.

“Misleading the lender in this way is fraud and both the buyer and seller could face prosecution.”

How to protect yourself

“If a buyer asks you to exaggerate the price they will pay you for a property to ensure a quick sale, you should keep in mind that this is fraud and you could put the sale at risk and even face prosecution.

If you are receiving benefits, you should also consider that overstating the price paid for your property could affect your benefits payments as it may be assumed that you have additional money from the sale of the property.

“While a quick sale may be appropriate for some people there are other steps you can take to deal with problems paying your mortgage that might leave you better off, such as discussing your options with your lender.”

Caution over other home financing schemes

“In some cases you may be offered the option to remain in your property and rent it from the investor who purchased it. If so, this is a Sale and Rent back agreement and firms offering this must be authorised by us. If they are not shown on our Register with sale and rent back permissions, don’t deal with them.

“In addition, firms may offer you other solutions which appear to repay your debts and may allow you to remain in your home without selling it immediately. We urge you to treat all schemes like this with caution and see the consumer alert we issued last year on Lease Options and Exchange with Delayed Completion schemes.

What is mortgage fraud?

Mortgage fraud occurs where individuals defraud a firm or private lender through the mortgage process.

“The value of a mortgage obtained through fraud is a crime. Fraud can occur through providing false details, failing to provide information required by law or even where you know only that the information used by others, such as the price of a house sale, might be misleading or untrue.”

Shadow Treasury financial secretary Chris Leslie has hit out at mortgage lenders for “sneaky” standard variable rate rises and called on them to do more to warn customers of potential rate rises.

Speaking at a fringe meeting on debt at the Labour autumn conference in Manchester yesterday, Leslie said it is “amazing” that rates are going up when funding is so cheap.

In August Santander increased its standard variable rate by 0.5 per cent to 4.74 per cent which came into force today and earlier this year Halifax, Clydesdale Bank, Yorkshire Building Society and the Co-operative Bank increased their rates.

If you have a mortgage and are currently on the lenders standard variable rate, then why not give us a call to see how much you could potentially save by switching lenders.

Call us on 01489 580020 to discuss your requirements.

You can also contact us via the Contact Us page or by email if you prefer info@parkgate.net and see what we can offer you to ensure that you are not over paying being on the lenders standard variable rate.

 

HSBC has decided to restrict the number of conveyancers it uses to transact its mortgages.

The panel will consist of 42 firms, however customers will be free to use their own solicitor, although HSBC will still instruct a firm from the panel for its own legal work if they do so Customers will therefore be offered an incentive to use a solicitor from the panel.

HSBC only deal with customers directly, therefore using a local mortgage adviser to research the market and consider all your options and associated costs could save you money and save you trying to deal with two solicitors.

For impartial advice on mortgage products for purchase or remortgage direct deals or advised products, please give us a call on 01489 580020 or email your enquiry to info@parkgate.net

Tim at Park Gate found us an excellent Buy to Let Mortgage. Very competitive interest and almost zero other fees. Excellent, friendly & clearly explained service throughout and we recommend them. 

95% Mortgages available through park gate for purchase or remortgage customers.

With rates fixed at 5.99% for 2 years, low application fees. 95% mortgages are limited to £250,000 maximum loan amount.

Remortgage are also available 95% loan to value comes with a free standard valuation and free solicitors.

All applications are subject to the lenders criteria and affordability.

Why not call us now to see if you qualify for 95% mortgages for purchases or remortgages or you can email us on info@parkgate.net or alternatively you can complete the contact us page on www.parkgate.net/contact-us

Mortgages
life insurance
home insurance
equity release

We offer whole of market advice for all types of customers, whether you are a first time buyer, home mover or looking to purchase a buy to let property. Being independent we are able to offer impartial advice from the whole of the market to ensure you get the product that suits your financial needs.

Whether you are looking to protect your mortgage payments or your family, we provide independent advice for life insurance, critical illness cover and income protection from a wide range of providers.

Buildings Insurance is a requirement when you complete on a mortgage the cover is to provide security to the lender, the insurance covers the main structure of your home. It will cover you for subsidence, storm, flood, fire or smoke damage and cover the costs of rebuilding or repair.

Equity release is a way of releasing cash from your property, either through selling a percentage to the reversion company or taking a mortgage on it, while allowing you, the homeowner to continue living there as long as you wish.