How much could you save?

Based on the average house price in the South East of England of £243,000* - you would save a massive £18,225 just by attending the seminar and having the 2.5% fee waived. (*Nationwide 2002)

The TRUTH about "no money down" schemes
You may have read about various no-money-down, no-deposit schemes - promises made to buy property without using any money for the deposit etc. or how to be a millionaire in six months flat! - these methods do not work!

Why they don't work?

For such schemes to work you would have to locate a property, which is WORTH more than you would PAY for it. Say the property is worth £250,000 and you were to negotiate a purchase price of £200,000, there would be a profit potential of £50,000.

You would then need to gear the mortgage based on the value of the property and not the purchase price (read the small print supplied by the lenders).

The mortgage lender would somehow have to be willing to lend to valuation and advance (lend) £212,500 - so who is taking all the risk?

You could afford to just walk away from the property if you didn't keep up the repayments and wouldn't have lost a penny. Do you honestly think a lender will take that risk?

Additionally, a valuer/surveyor (instructed by the lender) must legally disclose the purchase price to the lender (it is unlawful for him not to). The lender will lend against the purchase price or valuation - whichever is lower.

The solicitor is also lawfully bound to inform the lender of the purchase price and valuation.

Technically the Seller, Surveyor, Solicitor and Buyer would need to lie in order to successfully see this application to completion. Do you think this is likely to happen if you use reputable professionals?

Any company stating that they can organise deals in this manner is either lying or is doing something that is not legal, ethical or not within codes of conduct within their respective regulatory bodies.

There are many companies offering seminars whose methods consist of buying a house "under the market value". Easier said than done! And then obtaining a 95% mortgage, then re-mortgaging the property, paying off the first mortgage and keeping the extra cash to finance other properties! Why doesn't this work?FACT You cannot obtain a 95% mortgage on buy to let properties!
FACT You cannot re-mortgage for 6 - 12 months!
FACT If you are borrowing more you will need to have proof of higher earnings!
FACT Even if you re-vamp the property and the value goes up, once you tell the mortgage lender that you are renting the property they will not release the funds because they can only lend you up to 85%.
FACT If you do lie about whether or not you live in the property, remember that you could be convicted of fraud!

You should also be wary of companies who rely on taking a second charge on your own home or who obtain a loan for your deposit from the seller!
There is only one truly profitable way to invest in property - the FUSE way!