Mortgage frauds on a rise in UK

Mortgage fraud cases are on a rise in UK. In the first 6 months of 2010 the fraud cases have increased to a 22 year high.

As per the report of the accountancy firm KPMG, the first half of 2010 saw 21 cases of mortgage fraud. The value of money lost in these cases reached £96 million. However, in 2009 the number of frauds were 18 and the amount reached £24 million in the first 6 months. In all there was a loss of £77 million in entire 2009 which is less than the first 6 months of 2010.

The accountancy firms has predicted that the situation will worsen further. They say currently the lenders are in great hurry to lend money-fearing competition and they do not insist on strict verification norms. In many cases the applicants are not asked to show their income proof which is vital in knowing if the borrower will be in a condition to repay the loan or not.

The mortgage fraud cases involve high amounts, one of the biggest cases involved £50 million. Another fraud amounted to £2 million. As per KPMG the cases are rising day after day and this is happening at a large scale. Not every case is registered and there is a lot more than going on. As the figures show, the mortgage fraud amount has crossed £100,000 and in all 166 cases in 2010. This number is the highest when compared to the past 22 years.

It is time lenders become aware of the situation and be strict with their rules to pass the mortgage amount.

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