publication date: Sep 27, 2011
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author/source: Kate Faulkner, Designs on Property and Author of Which? Property Books
Buying Property - For No Money Down
Nearly every day we are answering your property questions for free on our forum.
Here's a taste of just one of the many questions we've recently answered:-
Q - I have about £5,000 in savings and have seen I can buy properties with 'no money down', but have to pay for legals etc, is this a good idea? HERE'S THE FULL QUESTION
A - Glad you asked about this, I'm not a fan! There are lots of issues with no money down deals, not least of which they could well be mortgage fraud.
The reason being is no money down deals typically involve buying a property at say £70k, but telling the mortgage lender it's worth £100k. This means the transaction isn't transparent, so could be classed as mortgage fraud. Investors have been prosecuted for this kind of thing! HERE'S THE FULL ANSWER
Take a look at some of our other related articles:-
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