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Attempted mortgage fraud jumps 22%

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The number of fraudulent mortgage applications submitted to lenders increased 22 per cent between April and June, according to Experian.

A total of 39 in every 10,000 mortgage applications were identified as fraudulent over the three months, according to Experian’s latest Fraud Index report. This is up from 32 in every 10,000 applications in the second quarter of 2011.

Individuals hiding adverse credit information accounted for 24 per cent of attempted mortgage fraud, while a further 21 per cent provided misleading employment histories.

Experian’s director of identity and fraud services in the UK and Ireland Nick Mothershaw says: “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.

“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.

John Charcol senior technical advisor Ray Boulger says: “As potential first time buyers and others who want to move but have either negative or little equity get increasingly frustrated with not being able to move, this becomes an increasing temptation. However people cannot get away with some of the things they may have gotten away with five years ago.”

All Types of Mortgages’director Dale Jannels says the figures emphasise the need for up-front credit checks. He says: “It is important that brokers get a credit report right at the outset.”


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