Fraudulent mortgage applications rise by a quarter - Mortgages - News - Moneyfacts

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Fraudulent mortgage applications rise by a quarter

Fraudulent mortgage applications rise by a quarter

Category: Mortgages

Updated: 22/08/2012
First Published: 22/08/2012

MONEYFACTS ARCHIVE
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The number of fraudulent mortgage applications has risen over the past year by 23%, as more cash-strapped consumers take drastic steps to gain mortgage approvals.

The credit reference agency, Experian, has revealed that for every 10,000 mortgage applications, fewer than 40 were found to be fraudulent.

Misleading information regarding personal circumstances, such as employment and credit histories, were found to be the most common types of attempted fraud. Nearly a quarter of dishonest applications involved fabricated income details.

Many applicants had lied about the intended use of the property, by saying they intended to live in it themselves despite planning on renting it out to boost income.

Nick Mothershaw, director of identity and fraud services at Experian, said: "Over the course of the 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."

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