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Mortgage fraud 'rises for fifth year in a row'

By Daniel Culpan

18 April2021

Credit reference agency Experian has found that fraudulent mortgage applications have increased for the fifth consecutive year, Credit Today reports.

Altogether, 34 in every 10,000 mortgage applications were found to be illegal in 2011, compared with just 15 in every 10,000 back in 2006 - showing that cases of mortgage application fraud have more than doubled in five years.

Looking across the UK's financial services sector as a whole, the overall rate of fraud at the application stage increased by 4% last year to just over 17 in every 10,000 applications. According to Experian, the overall increase in fraud was also driven by a hike in instances of current account and insurance fraud.

The findings indicated that a massive 93% of attempted mortgage frauds in 2011 were as a result of people falsely representing their personal details on applications. Generally, these first party frauds involved individuals giving a false employment status or financial information - and most commonly, trying to hide a bad credit history.

It seems that this kind of fraud comes largely from the more 'financially stressed' parts of society - with young, poorly educated individuals partly responsible for around 15% of first-party mortgage fraud crimes in 2011.

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Tags: credit rating, mortgage, Experian, fraud, crime, fraudulent mortgage, Credit Today, remortgage

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