Cifas, the fraud prevention service, said the number of cases where people had provided false documents – such as bank statements or proof of income – had increased by 14%. And it said those submitting altered versions of these had soared by 32%.
It has decided to expose these figures in a bid to highlight the fact that this type of fraud – considered by many to be a victimless crime – is both illegal and can have serious consequences for those involved.
Consequences
According to Cifas, 13% of British adults thought it was ‘reasonable’ to exaggerate income on mortgage application.
But it is warning taking out a mortgage based on false income mean it is likely to be difficult to pay the debt later on.
Indeed, James O’Sullivan, policy manager for the Building Societies Association, explained how being dishonest could mean the applicant gets a unrealistic affordability assessment from their lender and this could mean they end up being unable to make repayments.
He added: “When caught, offenders struggle to get future credit. It is far from being a victimless crime and something lenders take rigorous action on.”
Criminal charges
Other consequences include being blacklisted against future product purchases or even being investigated by the police, which could lead to a fine or prison sentence. There is also the possibility of losing your home, warned Cifas.
Mike Haley, chief executive officer of Cifas, said: “It’s easy to assume that making exaggerations to improve the chances of your mortgage being approved is harmless, but the reality is that this is fraud and the consequences can be very serious.
“Mortgage providers carry out rigorous checks, and so exaggerating your income or withholding any change of circumstances could result in it being harder to obtain financial products in the future such as mortgages and loans.”
