The Council of Mortgage Lenders has revealed that its members are reporting a huge upturn in fraudulent mortgage applications as credit dries up and the majority of high-LTV deals disappear.
Lenders have stated that an increasing number of borrowers are giving wrong salary details or failing to declare credit card balances that would affect their ability to secure a mortgage.
As banks become increasingly cautious about lending to consumers with poor credit ratings, brokers have expressed concern that legitimate
applicant
s are having to jump through hoops in order to qualify for home loans, and that even one missed payment can prevent them from securing credit.
Sue Anderson, from the CML, said that fraud was occurring due to fewer mortgage products, tighter criteria and an increase in demand.
She added: “Lenders have become a lot more vigilant.”
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