Six mortgage advisers were banned by the Financial Services Authority (FSA), yesterday, due to mortgage fraud. One of them was fined £130, 000 and the total number of brokers to have been banned this year is now 91. Click here to read the full report by 'IFAonline' published on 5 July 2010.
The FSA are continuing to clamp down on dishonest brokers as mortgage fraud is said to be on the increase. Three of the brokers worked for a firm called Neale Morton IMS Limited while the other three worked for different firms.
Margaret Cole, director of enforcement and financial crime at the FSA, said: "These individuals put lenders at risk of financial crime and threatened to undermine confidence in the mortgage market, so this action makes the market a safer place.
"Our crackdown on mortgage fraud continues as a priority in our ongoing campaign against financial crime.
"We have banned more than 90 mortgage brokers over the last three years and the fine on Morton takes the total penalties levied for mortgage fraud to more than £1. 7 million. "
It is very important to ensure that your mortgage application is completely accurately and honestly. If the lender finds out that a mortgage application has been made fraudulently they will withdraw the offer. If you have exchanged on your purchase when this happens you will find yourself in a position where you may not be able to proceed with the purchase due to lack of funds. This means that you will lose your deposit and the seller can sue you for breach of contract. Unfortunately there are still a number of unscrupulous brokers out there who do not do things by the book and are happy to submit false or misleading information on a mortgage application. My advice is - it is simply not worth the risk. If you using a broker to secure a mortgage, always go with someone above board.