As we are all aware the past couple of years have not been the easiest with the looming recession and the sudden down turn in the property market. With the constant struggle for homeowners to keep up with their mortgage payments and first time buyers trying to get their foot on the property ladder, now has never been a more “convenient time” for mortgage fraud to take place.
Mortgage fraud quadrupled in the first 6 months of 2010 with incidents involving home loans reaching an all time high in 22 years.
The most common fraud involves applicants self certifying mortgages where their income does not need to be proved to obtain the mortgage. These mortgages have now been abolished due to the ongoing fraudulent applications being made. Also it is common that applicants inflate their earnings or do not disclose a previous address to obtain a higher mortgage loan amount.
With the ongoing recession that we find our country in, it is obvious that the banks and mortgage companies have tightened their lending criteria but the number of fraudulent applications made is still on the rise.
Whilst an individual may employ a financial adviser to act on their behalf in respect of obtaining mortgage finance it is advised that they remain vigilant through the process and ask if they have any queries.