The CML (Council of Mortgage Lenders) revealed earlier this month that CML members are reporting a large rise in mortgage application fraud, presumably caused by the difficulties of obtaining credit and the disappearance of most of the high loan-to-value mortgage deals on the market.
Mortgage lenders are stating that a growing number of borrowers are providing falsely increased salary details or neglecting to mention credit card balance that might have affected their ability to obtain a mortgage.
Major banks and building societies continue to remain cautious of lending to those with poor credit scores and as a result many borrowers have expressed concern in the media over recent months that even legitimate borrowers with immaculate credit ratings are being forced to ‘jump through hoops’ in order to qualify for mortgages. It has been stated that in some cases just one missed or late mortgage payment can prevent them from qualifying.
A spokesperson for the CML, Sue Anderson, said the rise in mortgage fraud was being attributed to a lower number of mortgage products, tighter lending criteria and a rise in demand for mortgages, commenting:
“Lenders have become a lot more vigilant.”
This should serve as warning to mortgage advisors and borrowers alike who might be tempted to falsify details on a mortgage application, as the risk is not worth it.