Committing mortgage fraud 'is madness'
20th Apr 2012
People who commit mortgage fraud are taking a big risk and are very unlikely to be successful, it has been noted.
According to Catherine Hearnden, director at MyMortgageDirect, checks on mortgage applications are improving and so fraud is being discovered more.
Her comments came after a report by Experian revealed that fraudulent applications for mortgages increased by eight per cent in 2011, which is the fifth year in a row that they have risen.
Overall, 34 in every 10,000 applications for mortgages were found to be fraudulent in 2011, compared to just 15 in every 10,000 recorded when the same study was carried out in 2006.
"People are mad to try and do anything like that. It is not necessary because it will be discovered these days as mortgages are more closely underwritten and checked. Brokers are better qualified to be able to check," Ms Hearnden added.
She noted that mortgage fraud is something that will likely never be eradicated as some people are still in the mindset that they feel they can afford to pay it, and so will do anything to try and get the mortgage.
"I can see that they will try and do it, but I don't think they will be successful," the expert explained.
© Zoopla Property Group Limited