scary peice of advice

[Mike400]

Curiosity led me to do some "web research" regarding living on a boat. I came across this gem of advice re funding the boat itself:

"Raising the cash for a boat can be a problem. You can’t get a ‘real’ mortgage on a boat, and the limited ones that are on offer charge much higher interest than house mortgages. You with be asked for a 20% deposit minimum.

The best way I can see is to use someones house mortgage to cover your boat. Get a friend or family to raise the money by telling their lender that they’re building an extension. No lender gives a damn whether they actually build the extension or not. Then arrange to pay back the sum at a calculated quantity per month. Life insurance and income insurance guarantees that you can’t default on the payments so your friend/relative is covered. No deposit, choose how long you repay over, normal interest rates."

This from http://myweb.tiscali.co.uk/simonmarshall/costs.htm

Hello Mike400, can you get a bigger mortgage and lend me the money?

F**k off??

mods - this isnt strictly boat related, and its sort of finance related but I think its mainly "daft idiot" related so should remain in the lounge?

[V8mate]

Why is it scary advice? Scary for who?

One person asks. The other says no.

Edited by V8mate on Friday 8th May 10:51

[Mike400]

V8mate said:

Why is it scary advice? Scary for who?

One person asks. The other says no.

Edited by V8mate on Friday 8th May 10:51

Hmm

Perhaps its just me then who has had very very nasty experiences with lending cash to my own and my OH's family.

These agreements are very rosy at the start, but what protection do you have when (not if) things go "pete tong" ?

I particularly liked the line about your mortgage company not giving a damn whether you used the extra cash for what you said you would...

[Nolar Dog]

It's not scary to me as I wouldn't be stupid enough to lend someone money for a boat.

But maybe they want an extension because their house is a bit dingy.

[Tyre_Tread]

So, basically get someone else to commit fraud and let them take all the risk while you reap the benefit?

Why not, its what the banks have been doing for years.

[Mike400]

Nolar Dog said:

But maybe they want an extension because their house is a bit dingy.

[Romanymagic]

Mike400 said:

V8mate said:

Why is it scary advice? Scary for who?

One person asks. The other says no.

Edited by V8mate on Friday 8th May 10:51

Hmm

Perhaps its just me then who has had very very nasty experiences with lending cash to my own and my OH's family.

These agreements are very rosy at the start, but what protection do you have when (not if) things go "pete tong" ?

I particularly liked the line about your mortgage company not giving a damn whether you used the extra cash for what you said you would...

I find it really hard to ask for the money back even though I am entitled.