From This is Money:
There has been an increase in the number of people entering false information on mortgage application forms, say the Council of Mortgage Lenders.
The most common falsehood reported is over-inflating income levels as consumers become aware of banks’ favouritism towards borrowers with large deposits or high credit scores.
CML said the problem has worsened by a rush of buyers hoping to take advantage of recent house price falls to get on, or trade up, the property ladder.
But despite the increased demand for mortgages, bank lending remains at low levels.
Sarah Robson, a spokeswoman for the CML, said: ‘We don’t keep figures on mortgage fraud but from anecdotal evidence we do know that it has increased.
‘That is to be expected as lenders’ criteria has tightened and would-be borrowers who are cut out are trying to circumnavigate this. But lenders are vigilant to it, so they are picking it up.’
One of the ways in which lenders have tightened their criteria is by redu…
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