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Lenders join with HMRC to tackle fraud

HM Revenue & Customs, the Council of Mortgage Lenders and the Building Societies Association have teamed up to create a tool to combat mortgage application fraud.

The mortgage verification scheme, which was announced in the March Budget, is due to launch on September 1 following a successful pilot scheme.

Use of the scheme will be limited to cases where lenders suspect fraud following their own checks.

Lenders will send the details to HMRC, which will check inc-ome details against information provided by income tax and employment returns. Lenders pay £14 plus VAT for each enquiry.

The National Fraud Author-ity estimates the cost of mortgage fraud was £1bn last year.

Mortgage Concepts Associates director Mike Richards says: “I am surprised this was not done a long time ago, these bodies should have had a system in place already.”

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