Mortgage Fraud

Many people do not understand how serious mortgage fraud truly is. When making an application for a mortgage, as borrowers, we will have been asked about our salary and to produce evidence of our income. There will be a minority of us who will have been "advised" by Financial Brokers or Members of the Financial Services Authority to tell little white lies when completing an application for a mortgage. Although at the time the application is made no loss is perceived and no harm appears to have been done. It is only later on when applications are scrutinised by banks and buildings societies or that problems arise during the life of the mortgage that the true gravity of the situation starts to hit home.

In a recent BBC investigation serious evidence of mis-selling was found in Britain's sub-prime mortgage market. It appeared that people were actively encouraged to lie on their applications for mortgages which would allow them to purchase properties well beyond their means. One cited example is a borrower whose real income was £25,000 but who was able to obtain a mortgage in excess of £200,000.

Apart from the personal and social difficulties this sort of deception can cause, the real difficulties arise when the Police are involved and the borrower is unfortunately investigated for fraud. Very often the bank's financial interest is secure and no loss is suffered, but the borrower ends up with a prison sentence and suffers the loss of their home, very often with catastrophic personal and social consequences as well.

Should you be a broker where allegations have been made or if you are a borrower and are concerned about your position then in order to be advised and if needed represented in a police investigation or at court please contact 0845 872 6666.