View more on these topics

£7m mortgage scam rocks Midlands

A number of lenders and mortgage brokers in the West Midlands are reported to have fallen victim to a £7m mortgage scam.

The perpetrators are thought to be a group of solicitors based in East London who in one instance managed to con almost £600,000 from an unsuspecting broker.

Birmingham-based newspaper the Sunday Mercury reported on Sunday that pensioner Barbara Moody had her £750,000 Birmingham home refinanced by the fraudster without her knowledge. BM Solutions is reported to be one of the lenders caught up in the scam.

A spokeswoman for BM Solutions says that although the Barbara Moody case was not connected with the lender, it could not rule out that it had been part of a larger scale scam.

She says: “Without having detailed information on particular cases we cannot say whether we were involved or not.”

The Metropolitan Police are now investigating the fraud. A spokesman for the Met would not confirm whether it was investigating an alleged mortgage scam.

He says: “I can confirm that we are investigating an alleged fraud involving a company based in East London.”

The news comes as research by Credit Industry Fraud Avoidance shows that the number of fraud applications approved in the UK has more than doubled.

In 2004 CIFAS says it found 7,200 cases where fraudulent applications were successful in obtaining an insurance policy or credit agreement.

By 2007, the number of successful fraudulent applications had rocketed to a whopping 14,500.

Recommended

Scottish market set for growth

The Royal Institution of Chartered Surveyors predicts that the Scottish housing market will grow in 2008. Speaking at the Mortgage Business Expo Glasgow, David Stubbs, senior economist at RICS, said that while house prices were slowing across the UK, he expected the Scottish market to outstrip other parts of the country.

Don’t get carried away by Property Prices

Nationwide have just released their latest house price report showing that prices have fallen for the fourth month in a row.The annual rate of house price inflation was 2.7% in February, down from 4.2% in January, and the lowest since November 2005.The good news is that they go on to suggest that “It is encouraging […]

Retaining clients is not a done deal

The evolution of the mortgage market, the rise of comparison websites and demand for more products are adding to the pressures brokers face when trying to keep clients, says Sally Laker

Up, Up and Away For Mortgage Rates ?

I see Halifax, amongst others, is increasing its tracker rates again today which in isolation is not so much of an issue. Taken in the context of the last few weeks, I have never known such a situation.Lenders are repricing upwards, with not much if any notice, on a frighteningly regular basis which is making […]

Why prevention is better than cure

Quoting the famous adage, prevention is better than cure; there are many proactive benefits that can improve wellness in the workplace, decrease stress, increase staff morale and reduce absenteeism, as well as attracting and retaining employees of a higher standard. With a recent study showing that employees in Britain are working below peak productivity, preventative benefits can ensure you address potential health issues or causes of stress at their source and ensure productivity in the workplace remains at an optimum level. With this in mind, how are you using preventative benefits to help keep your workforce happy and healthy?

Newsletter

News and expert analysis straight to your inbox

Sign up