Help to Buy Scheme Raises Threat of Mortgage Fraud, Police Warn
Posted in the Business News Forum
Since: Oct 12
#1 Oct 28, 2013
High quality global journalism requires investment. Please share this article with others using the link below, do not cut & paste the article. See our Ts&Cs and Copyright Policy for more detail. Email [email protected] to buy additional rights.
The governments flagship Help to Buy scheme could cause a sharp rise in mortgage fraud, according to one of the most senior policemen tackling economic crime.
The mortgage subsidy programme, the second phase of which started this month, could reignite a crime that has been declining as a result of tighter lending requirements, Detective Superintendent Oliver Shaw of the City of London Police said.
Mortgage fraud is definitely on my radar, he told a conference on Thursday.Weve seen fewer mortgage frauds recently because banks have been more careful about who theyre lending to but when Help to Buy goes live fully, thats a huge vulnerability. Were trying to change everyones mindset before it gets to the problem it was in 2009.
Fraudulent brokers and solicitors were of particular concern, he later told the Financial Times.
The scheme has already been strongly criticised by economists, lenders and even the International Monetary Fund said it risked inflating house prices. These have begun to rise sharply this year, although growth has mainly been concentrated in London.
Mortgage fraud has crept upwards since 2006, according to statistics compiled by Experian. Last year, 38 of 10,000 mortgages were fraudulent, compared with 15 in 10,000 in 2006. Some commentators have attributed the rise to lenders being better at spotting applications that misstate income or poor credit history.
Help To Buy was announced by George Osborne, the chancellor, in this years budget. Its first stage offered equity loans of up to 20 per cent of the value of a new property.
Add your comments below
|Republicans Are Trying to Let Internet Provider...||17 hr||Whats the difference||1|
|W.U transfers with NO UPFRONT !!! (Jan '13)||Tue||TWISTEDHALO||130|
|Riot in Stockholm suburb after drug suspect is ...||Feb 21||Go Blue Forever||1|
|Warren Buffett Knows Something About Walmart||Feb 18||Texxy the Selfie Cat||1|
|We just got a better idea of how much cash Ther...||Feb 17||Darius||2|
|Trump Deflects Migrant Ban Chaos by Blaming Del...||Feb 16||Econo||2|
|T-Mobile is fixing the two biggest flaws in its...||Feb 14||Hate Apple||1|
Find what you want!
Search Business News Forum Now
Copyright © 2017 Topix LLC