Wannabe homeowners giving into temptation as mortgage fraud increases
Fraudulent mortgage applications have increased by 22 per cent during the second quarter of the year, according to Experian.
According to its latest Fraud Index report, 39 mortgage applications in every 10,000 were branded as fraudulent, up from 32 in every 10,000 in Q2 2011.
Experts believe with many first time buyers and homemovers frustrated by their lack of, or even negative, equity, they are growing increasingly tempted to lie on their mortgage applications.
24 per cent of attempted mortgage fraud involved applicants hiding poor credit histories while 21 per cent of clients provided misleading information about their current and previous employment.
Nick Mothershaw is the Director at Identity and Fraud Services at Experian:
“Over the course of last year, we have seen mortgages continue to be targeted at a high rate, with more people trying to misrepresent their personal, employment and credit information on applications to get properties out of their reach.
“At the same time, we have also seen an increase in the number of properties where the use of the property is misdeclared, such as applying for a regular residential mortgage on a buy to let property.”
Content correct at time of publication