Borrowers are being offered replacement pay slips and P60 statements which could be used to inflate income for mortgage applications.
Brokers are calling for an investigation amid concerns that this practice is undermining the the regulator’s attempts to ensure proper assessments on mortgage affordability.
An advertisement from a company called A2ZServices says: “Can’t get a mortgage loan? Need proof of income? No problem! We provide original computer-generated replacement pay slips and P60s.”
A2ZServices only requires the customer’s approval to provide pay slips customised with an employer’s name and does not check any salary information.
Numerous other companies also promote replacement pay slip services.
A2ZServices manager Navid Ahmed says: “We have no means of checking with employers. If someone gives us the wrong statement, they are liable for prosecution.”
FSA spokesman Robin Gordon-Walker says: “Any broker or lender concerned about fraudulent applications should report them to the police.”
Last week, FSA managing director, retail markets, Clive Briault warned that too many mortgage firms are failing to assess affordability adequately.
Promise Finance managing director Steve Walker says: “People can get one of the market-leading rates by pulling the wool over the eyes of lenders and brokers. I am concerned that this undermines the FSA’s work on mortgage self-certification.”