It has been reported that some officials are claiming that mortgage lenders are being so pressured by the government to increase lending and be competitive in the mortgage market that they are resorting to listing ‘fake’ mortgage deals.

These fake mortgage deals are listed to keep the government happy but are then pulled before a borrower can actually apply for one because they do not really exist.

This means that borrowers are being adversely affected because they believe better deals are out there than there actually are.  In some cases, the borrower may apply but their application will be rejected.  Some mortgage advisors claim that this is happening mainly in the 90 per cent loan to value (LTV) market.  In reality, these lenders do not really want to be lending at this level of LTV because they feel it is still too risky in the current economic climate.

There is no doubt that there are some genuine mortgage deals out there at this sort of LTV, however, many borrowers may wish to seek advice from a mortgage advisor to ensure they get the right deal for their circumstance.

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