Steps to combat mortgage fraud
Following a successful trial period a new mortgage verification scheme has been rolled out across the UK property market in an effort to beat mortgage fraud while offering protection for lenders and customers alike.
According to research the cost of mortgage fraud during 2010 escalated to an estimated sum of £1 billion so the scheme is a welcome tool for the financial industry determined to clamp down on rogue elements abusing the home finance sector.
The Mortgage Verification Scheme is supported by HM Revenue & Customs, the Building Societies Association and the Council of Mortgage Lenders and will be used in cases where lenders suspect mortgage fraud may be occurring.
The cost to lenders using the scheme is just £14 plus VAT and during the trial lenders reported positively on the results. Mortgage approvals are not expected to take any longer when subjected to the verification scheme.