There has been a dramatic rise recently in relation to mortgage fraud and property fraud cases in the UK. This has lead to an increasing need for members of the public to be fully and completely informed about what to be aware of and how to avoid falling foul of a property fraud scam.

There are various ways in which Property fraud can be undertaken and normally this will involve a number of participants; some of which will not even know that they are being taken advantage of.

If you participate in a scheme that requires you to provide false or misleading information to a mortgage lender is of course mortgage fraud and is quite clearly a criminal offence.
There are two prominent kinds of mortgage fraud today: one involves a property fraud scam, the others are designed to squeeze money out of transactions involved when a property is exchanged between buyers.

An example of a Mortgage Fraud is where a Straw Buyer is used. This happens when someone is offered money to lend their identity, and are considered phoney loan applicants. They are often offered several thousand pounds for the use of their name and good credit information. Some straw buyers may not know that their name was used on a mortgage application.

Property Flipping seems to have been used to perpetrate mortgage fraud during the boom years of the property market. This involves a dishonest seller who artificially inflates the value of a property. This involves fraudulent valuations, false loan documentation and exaggerated incomes in order to secure mortgages.

Conveyancing solicitors have a duty to be aware and keep an eye out for any suspicious behaviour surrounding conveyancing transactions between the respective parties involved.

- Nicola