Reading that the former English Defence League leader Tommy Robinson was last week jailed for 18 months for mortgage fraud got me thinking that it’s been a while since I have read a decent mortgage fraud story.
After the last recession, mortgage lenders took a long hard look at themselves and started to focus on the quality of their lending as opposed to the quantity. For the first time ever, lenders started to talk to each other, and share information about solicitors / brokers / estate agents / surveyors in fact anyone involved in the housing transaction, whom they believed may be involved in mortgage fraud.
Lenders imposed additional checks and set up specialist units to double check anything which looked remotely unusual or untoward. Suddenly when we called for updates, lenders were telling us “It’s gone to Head Office for audit” or “It’s with the Credit Risk Team.” Savvy brokers increased their firm’s fraud checks and made sure the mortgages they submitted were squeaky clean.
The clamp down took some brokers by surprise, as they were struck off lenders panels and black-balled by others. Banks started to press charges as opposed to quietly refusing future business and for a period of time the industry papers were full of tales of Mortgage Brokers being shut down and in some cases sent to prison.
One bank executive told me that their mortgage fraud had decreased from over £100m to less than £4m in 2 years. Their credit risk team are hailed as heroes and with such fantastic results have pretty much a free hand in deciding who stays and who goes. They also get to act with an air of mystery, striking individuals and firms off without giving a reason, to avoid anyone “tipping off” anyone else, which is another Money Laundering Offence.
Pretty soon these banning orders were extended to brokers who provide “poor quality” business as well as fraudulent business, as lenders found out that accepting only “quality” business meant their borrowers were less likely to fall into arrears.
Clearly the reason this particular story even made the BBC was Mr Robinson’s “celebrity” status rather than the ingenuity of the crime. The story in fact focused more on the terrible time he may receive have in prison from the various groups he has upset in the past than the fraud itself.
If anything this particular fraud was a bit on the boring side, £160,000 obtained by a dodgy mortgage broker with a couple of fake payslips. Clearly Credit Risk are still on top of their game!
To speak to an independent mortgage adviser, contact us or call 01628 507477.
Recent posts
The chancellor will deliver her second budget this autumn. Due to slow economic growth and high inflation, the government need to manage a £40 billion shortfall in public finances. There have already been reports about changes to taxes including income tax and capital gains tax.
Landlords could face a new tax this autumn
5 days ago
The chancellor has advised that landlords could have another tax to pay this autumn as the Treasury decide whether to extend national insurance contributions to rental income.
According to a report in the Guardian, senior ministers have asked Treasury officials to look into a “proportional” property tax to see how it would work as an alternative to the existing stamp duty land tax on owner-occupied homes.
More than a quarter of UK adults in long-term relationships (26%) have reported that despite living together, they keep their finances separate from one another.
There has been a rise in both rent and mortgage costs over the last three years, with renters seeing a greater increase in their monthly payments than those with a mortgaged property.
Delayed Start Mortgages
28 days ago
The new Delayed Start Mortgage launched by Skipton Building Society allows first time buyers to postpone the first three mortgage payments. This product has been designed to help soften the blow of moving in costs for first time buyers.
Green Mortgages | Rewards and Benefits
4 Aug 2025
Mortgage lenders are starting to recognise their “Green” responsibilities when it comes to the different products they offer.
A recent study by Boon Brokers where 1,000 people who had used an estate agent over the last year were surveyed, showed that a whopping 52% said they were pressured into using the estate agents’ in-house mortgage broker.
More information
Trusted by
