Desperate measures taken to get a mortgage
More and more people are lying in order to get a mortgage according to a new study by Experian
August 22, 2012
Mortgage fraud has increased by 23% according to a new study by finance firm Experian.
This is largely due to the increasingly stringent lending criteria required by more and more mortgage providers. Since the sub prime bubble exploded in 2007 banks have been forced to row back considerably from their previously rather relaxed position. Gone are the days of 125% mortgages and loans given on the basis of whatever the applicant claims they earn.
Consequently people have become increasingly desperate, and many have been forced to lie to get a mortgage. The Experian study found that 39 in every 10,000 mortgage applications made in the second quarter of 2012 were made fraudulently.
The study claims that more than a quarter of the mortgage frauds were down to people lying about their circumstances, such as a poor credit history. or misleading employment information.