Regulator sees huge rise in mortgage fraud

21/05/2009

New figures from the financial regulator has exposed the big problem of mortgage fraud in this country.

According to the Financial Services Authority (FSA), the total amount of fines it handed down in January-March this year came to over £300,000, the BBC reports.

Shockingly, this is equal to the FSA's mortgage fraud fines for the whole of last year.

The very sharp increase could be explained by the continuing credit crunch - which has pushed house prices down by 15 per cent in the last year and made it hard to get a loan on the high street.

This seems to have led to higher numbers of people lying about how much they earn in order to get preferential treatment from a mortgage lender - a common form of mortgage fraud.

The FSA has also released information on how many people have faced other fraud sanctions over January-March.

In total, nine orders have been given by the regulator banning people from working in the industry again.

Tags; Housing Debt and Bills, Young Family Finances, Credit Card Lifestyle,

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