Mortgage after purchase

In message , Paul Kwazakki writes

I've done this quite often, and have never had a problem.

In message , Paul Kwazakki writes

Re-mortgaging (which is what the lenders usually call it even though you havent yet given a mortgage to re-mortgage) is a routine and common transaction. Many lenders will ask what the dosh is for, and many will be happy with 'equity release' or 'fund raising' pr the like. So long as the potential use is legal, not investment based (i,.e. To speculate on shares) and not related to purchasing a time share, then you should be OK.

Bear in mind you may duplicate some legal and survey costs. If you start searching for your lender right away you may be able to get a survey/vaulation done for your own purposes now from a surveyor who is on the lender's panel and this might save you some dish later. Also, tell your solicitor what you intend to do and he may combine some of the work.

"john boyle" wrote

OK ...

"john boyle" wrote

Why not?

"john boyle" wrote

Why not?

"john boyle" wrote

In message , Tim writes

They are scared of a huge fine form the FSA. Note my use of the word 'speculate' which implies a possibility of total loss, as opposed to 'investment'.

There is (or used to be) a special clause in the Consumer Credit Act which specifically regulated the lending of funds for the purpose of buying a time share. This was because of the pressure sales techniques once used by such salesmen who often were arranging secured and unsecured loans. Potentially, the lender could end up responsible (a bit like the Credit Card thing) so loads of lenders decided not to have anything to do with it, at all, ever. I dont know if its still in there. I put it in the post for fun (it certainly used to be true) but will now check.

In message , john boyle writes

Got it. Yes its the old S74 again and backed up by other things like The Timeshare (Cancellation Information) Order 2003. Lloyds got a court ruling late last year against this for transactions conducted abroad, but S74 picks up UK loans and mortgages if arranged her.

Because of the number of Time share frauds linked to their high cost and no intrinsic value, and the number of dubious sellers that once existed giving no recourse for the lender, loads pf mortgagees declined to do such business.

But if "equity withdrawal" is an OK reason (as you indicated earlier), then what if the punters use the withdrawn equity to do naughty stuff like buy timeshares with it?

Who would know?

Im not justifying it! just giving facts!.

"john boyle" wrote

Exactly!

So, do you agree that it's actually OK to raise money by mortgage to fund "speculation on shares" or "a timeshare", as long as you don't tell the lender the lender the specific purpose (eg say it's 'equity release' or 'fund raising') ?

In message , Tim writes

Yes, but dont lie on the application form, just tell the truth in a generic way, as you say by the words 'fund raising' or the like. If you are using a mortgage broker, he mustn't know either.

Exactly. Makes a mockery of the whole rigmarole.

Tough. As a messenger, you have to be prepared to be shot occasionally.

It just seems daft to have "equity witdrawal" as a valid reason, since

*all* remortgaging or further advances really boil(s) down to just that. It isn't an actual purpose, it's just the vehicle. Once you've got the cash, you can do anything you like with it. And while it's one thing to tell an outright lie, by claiming you want the dosh for home improvements or a new car, when in fact you're going to invest it at the roulette table, it seems odd that one should be allowed to declare "equity witdrawal" and thereby in effect avoid giving any reason at all.

Reminds me of a story someone once told me, from the old days when certain substances could only be obtained from chemists, and had to be signed for in the poisons book, together with a purpose being given. Often the purpose was simply stated as "baby". Made it read as though the baby was to be poisoned. In fact, the nasty strong chemicals were just for bleaching/cleaning/disinfecting various baby accessories.

Unless you are an MP. :)

In message , Doug Ramage writes

Quite! :-)