Mortgage fraud rising, says CML

13 July 2009

Mortgage fraud is increasing due to the tighter lending criteria introduced by banks, it has been suggested.

According to the Council of Mortgage Lenders (CML), member firms have seen a rise in the number of people using false details in an effort to obtain larger loans.

The body said that many had been giving inaccurate income information, as they look to use the recent falls in house prices to move up the property ladder.

"We don't keep figures on mortgage fraud but from anecdotal evidence we do know that it has increased," CML spokeswoman Sarah Robson stated.

She noted that the rise "is to be expected" due to the fact that lenders have made it more difficult to obtain funds, but added that banks and building societies are "vigilant" to the problem.

A similar trend has emerged in the US, with the FBI recently stating that mortgage lenders in the country lost $1.4 billion last year due to fraudulent activity.

Become a bobsguide member to access the following

1. Unrestricted access to bobsguide
2. Send a proposal request
3. Insights delivered daily to your inbox
4. Career development