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Mortgage fraud continues to bite

Mortgages saw the highest number of fraudulent applications of any financial product, research from Experian suggests.

The Financial Times says according to Experian’s annual fraud report, tighter affordability rules under the Mortgage Market Review may be driving the number of false mortgage claims.

Mortgage fraud was the most common type of fraud last year, with 84 cases identified per 10,000. This is relatively flat from 87 in 2012.

Experian director Nick Mothershaw says there has been a rise in the number of false mortgage application claims made by the self-employed.

He says: “Most of it is individuals bending the truth to try and get a mortgage they’re not entitled to.”

On the rise in false claims from the self-employed, Mothershaw says: “It doesn’t mean they’re not going to pay for the mortgage but they’re making out that they are an employee of a business rather than a self-employed sole trader.”

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