The Association of Mortgage Intermediaries has poured cold water on credit rating agency Experian’s claim that the UK will see record levels of mortgage fraud in 2013.
Last week, Experian published its latest Fraud Index which revealed that attempted mortgage fraud rose 6 per cent in the third quarter to 38 out of every 10,000 applications, compared to 36 in the same period in 2011.
It predicts the number of fraudulent mortgage applications will rise 13 per cent next year to represent 43 out of every 10,000 applications, based on past trends, a weak economic backdrop and the tightening of affordability measures ahead of the implementation of the mortgage market review in April 2014.
Ami chief executive Robert Sinclair has dismissed Experian’s claims.
He says: “Credits are so tight now that lenders are not lending at 90 per cent LTV very often. Everybody is at 60 per cent prime and therefore it is much harder for fraudsters because they need to put a much larger amount of money into a property.
“Organised crime is a different issue and there are significant risks around that, but it normally requires a corrupt solicitor or surveyor so the MMR will not cause that to blip.”
All Types of Mortgages managing director Dale Jannels says: “The broker generally gets the credit report right at the outset and the lenders now do so many checks behind the scenes that it is getting incredibly difficult for anyone who is trying to hide something.”