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FSA bans Newcastle Home Loans for false information

The FSA has banned and fined Newcastle Home Loans for submitting false information in mortgage applications and for allowing its chief executive to operate without FSA approval.

Earlier this year Northumbria Police arrested four NHL staff and the FSA fined NHL £170,000 which the mortgage broker failed to pay. The FSA has now banned NHL’s directors Linda Patterson and Grace Darling Purdie and fined Purdie a further £85,000.

Shadow CEO David Purdie and mortgage introducers Michael Foster and Kenneth Robinson have also been banned.

The FSA says it worked closely with Northumbria Police and the Solicitors Regulation Authority in this investigation which involved a significant number of individuals across a range of financial, property and legal businesses in the Newcastle area.

NHL was used by its principals and by the mortgage introducers knowingly to submit mortgage applications to a lender which contained false information.

This resulted in the lender unsuspectingly advancing sums which, in some cases, were considerably higher than the purchase price of the property.

The FSA’s investigation found that the individuals involved were not fit and proper and should be prohibited from any further involvement in regulated activities or authorised firms.

In relation to Grace Darling Purdie, the FSA also found that she failed to exercise due skill, care and diligence in managing the business of NHL and took no steps to satisfy herself that the business was being conducted in accordance with regulatory requirements.

FSA director of enforcement Margaret Cole says: “The failures at NHL were serious, deliberate and occurred as a matter of routine. Its principals acted in a totally unacceptable fashion and their actions and the actions of those connected to the firm posed a serious risk to the lender and to market confidence generally.

“In the last three years we have banned 60 brokers and levied fines totalling more than £1 million in relation to mortgage fraud. We will continue to tackle mortgage fraud and perpetrators will find themselves facing bans and higher fines.”


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There is one comment at the moment, we would love to hear your opinion too.

  1. FSA bans Newcastle Home Loans for false information
    Having to inform clients that we’re authorised and regulated by the FSA has these days become almost an embarrassment. Pretty soon, one will exclaim: “What, you mean to say you’re regulated by that shower of…………..” If only this were a joke.

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