Tag Archives: Mortgage fraud

Property hijacks prompt fraud alert from the FSA Buy to Let News, Cautionary Tales, Latest Articles, Lettings & Management, Mortgage News, Property Market News

Financial watchdog is alerting landlords to watch out for property hijacking by fraudsters and crooked mortgage brokers.

The Financial Services Authority has circulated the warning to all small financial advice firms in the UK to pass on to clients. Continue reading Property hijacks prompt fraud alert from the FSA

New Move to Combat Buy to Let Fraudsters Buy to Let News, Cautionary Tales, Latest Articles, Property Market News

Street with 'To Let' signs outside most houses

"Precautions over buy to let fraud upped"

Buy to let lenders are making deals tougher for property investors who try and purchase off-plan or at below market value.

In the latest move to fight mortgage fraud, banks and building societies want builders to tell them about any price incentives that affect the value of the property.

Builders and developers must supply the information to the lender’s solicitor before conveyancing is completed and the buyer takes over ownership.

The new form is effective from October 1, 2011, and replaces an earlier version requiring less detail. Continue reading New Move to Combat Buy to Let Fraudsters

Mortgage Lenders and HMRC Team up to Fight Fraud Latest Articles, Property Market News, Tax & Accountancy

Property (mortgage) under inspection for fraud

"HMRC to Tackle Fraud Alongside Mortgage Lenders"

Mortgage lenders and the tax man are teaming up to beat fraudsters by checking income claims against tax returns and payroll records.

Banks and building societies can now ask HM Revenue and Customs (HMRC) to verify a borrower’s income by cross-checking loan applications with official income records.

The new move is part of a growing battle against mortgage fraud that costs the industry around £1 billion a year.

The Mortgage Verification Scheme has run as a pilot since the March 2010 Budget between the Council of Mortgage Lenders, the Building Societies Association and HMRC. Continue reading Mortgage Lenders and HMRC Team up to Fight Fraud

Property fraudsters to pay £200,000 or face longer in jail Cautionary Tales, Latest Articles

rustic looking Gavel

"More property frauds"

Crooked property investors who lied on mortgage applications to finance 19 buy to let homes have to pay back £200,000 of rents in six months or face longer in jail.

John and Helen Rose, 45, from Doncaster, were sentenced in February last year, for fraud following an 18 month investigation by South Yorkshire Police.

They admitted telling lies on mortgage applications and receiving rental income from the homes they bought by fraud.

Now, police are pursuing a confiscation inquiry under proceeds of crime laws.

At Sheffield Crown Court, the criminal gains the couple made were calculated as £1,280,000.00.

The Rose’s have been ordered to pay £200,000 in the next six months. Failure to hand over the cash will result in longer prison sentences.

Police and courts will monitor their finances to recover the remaining cash over the next six years, with any property or assets seized to pay back the amount they owe.

Temporary Detective Inspector Steve Leach said: “This sends out a clear message that any gains made from crime, at some point, will all have to be paid back.

“I would always ask the public to report people who are committing crimes and living above their lawful means, and to not let them get away with it.”

Mortgage scam valuer jailed for taking £1 million in gifts

Surveyor Mary-Jane Rathie, who accepted £1 million of cars and cash for taking part in a £10 million mortgage fraud, has been jailed for six years at The Old Bailey.

Rathie, 45, who worked for valuers Ashdown Lyons, was found guilty of five charges of fraud and concealing criminal property in a trial last month.

She artificially inflated luxury property valuations in London for clients who fraudulently obtained mortgages.

Two jailed for fraud of £50million Latest Articles, Property Investment News

Gavel on silk backgroundA £50million mortgage fraud said to be ‘off the scale in terms of the sentencing guidelines for fraud cases’ by a judge has resulted in a combined 20 years in prison for a property investor and a chartered surveyor.

Saghir Ahmed Afzal and Ian McGarry were charged in 2009 along with six others and plead guilty to six counts. Continue reading Two jailed for fraud of £50million

Mortgage Express sets aside another £80 million for fraud Latest Articles, Mortgage News, Property Market News

money going down the drainBuy to let specialist Mortgage Express expects to write-off another £80 million to loan fraudsters and slack business practices this year.

The former buy to let lender shut up shop for new business during the credit crunch and has already put aside around £200 million to pay for suspected fraud and negligence. Continue reading Mortgage Express sets aside another £80 million for fraud

Brokers warned about buy to let mortgage fraudsters Latest Articles, Lettings & Management

Experian logogBuy to let landlords and first time buyers are in the firing line as the main perpetrators of mortgage fraud.

Credit scoring firm Experian is warning mortgage brokers and lenders to watch out for false mortgage applications after the number of fraud cases has doubled in the past five years. Continue reading Brokers warned about buy to let mortgage fraudsters

Buy to let lenders tighten up on mortgage fraud Latest Articles

Buy to let mortgage lenders are barring legal advisors who have not signed up to the new Conveyancing Quality Scheme (CQS) from acting for them.

More than 700 legal firms have joined the CQS scheme – and mortgage lenders are making membership a condition of acting for them for every buy to let purchase. Continue reading Buy to let lenders tighten up on mortgage fraud

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