Lenders Urged To Remain Vigilant Against Mortgage Fraud
Following recent growths to the UK economy the National Fraud Authority are currently urging mortgage lenders to remain vigilant against mortgage fraud. Having successfully stopped in the last 12 months, over £130 million of money being stolen, property advisors are now fearful that lenders will become more lax as the property market becomes more competitive.
Approximately £1 billion every year is stolen through mortgage fraud. However since the onset of the recession, there has been a greater vigilance against this fraudulent activity as lenders have strove to protect their businesses…
In the past sub-prime, buy to let and self-certified mortgages have been the routes of choice for many fraudsters, which has prompted the majority of lenders to reduce their product availability in these 3 market places.
Similarly with the economy forcing many lenders to be careful with their costs, the last 2 years have witnessed a greater emphasis on fraud prevention, detection and recovery of losses.
However, recent growths in the economy have left many property advisors fearful that this vigilance against fraud will lessen as more and more lenders enter competitively onto the property investment market.
Luckily the continued support of the HM Revenue & Customs, Land Registry and police force can provide lenders with the help they need to maintain this robust approach:
- HM Revenue & Customs – their recent pilot scheme to help mortgage lenders identify fake documents has prevented over £111 million of fraud on commercial property investments
- Land Registry – have sought to increase their anti-fraud activities by hiring new staff, improving their training and updating their registry system. With these improvements they have managed to prevent fraudulent activity against property investments worth over £20 million
- City of London police – is currently working on 15 cases and have recently given life sentences to a gang believed to have conned high streets out of £8 million
In addition, the NFA and Metropolitan Police have recently teamed up to form a Mortgage Fraud Forum that will work to gain an increased understanding on mortgage fraud. Through this knowledge acquirement they hope to be able to implement new measures which will make it harder for individuals to commit mortgage fraud.
Related posts:
- Homeowners should avoid property fraud protection schemes
- Buy To Let Lenders Soften Lending Criteria
- Are There Clauses Hiding Away Within Your Mortgage?
- Still Paying Off Your Mortgage?
- Can Mix And Match Mortgage Help Property Owners?
Tags: commercial property investment, property advisors, property investment, property market
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