Comments : Fraudulent mortgage applications are increasing
With mortgages becoming progressively more difficult to obtain due to house prices rising and incomes lowering, there has been an increase in fraudulent mortgage applications.
A record high of 34 fraudulent mortgage applications in 10,000 have been found compared to 15 in every 10,000 cases found six years ago according to Experian.
Mortgage applicants have been lying about their job status and trying to hide their bad credit ratings in order to obtain a mortgage and the latest figures show that this is the fifth annual mortgage fraud increase in a row.
Because of these figures, mortgage companies are expected to tighten their criteria and announce rate rises which will affect over a million people across the country.
Good news is credit card fraud dropped from 19 in every 10,000 applications in 2010 to 12 in every 10,000 in 2011 which would calculate to a quarter of the level recorded in 2006 when there was the average of 45 fraudulent applications in every 10,000.
The report was made by using information from the National Hunter and Insurance Hunter fraud prevention systems, which is managed by Experian on behalf of its customers. The system allows financial business to assess new applications in conjunction with previous ones and underline variation which may point to fraud.
What are your thoughts on these shocking figures? Will people learn that they can not commit these crimes without getting caught or could it be worth the risk?
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