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Mortgage fraud reaches £36m in 2008

The value of mortgage fraud increased by almost ten-fold last year to hit £36m, the latest data from KPMG reveals.

The forensic fraud barometer from KPMG shows that in 2008 the value of mortgage fraud reached £36m, compared to £3.7m for 2007.

The consultancy firm is warning that mortgage losses are set to emerge as “more visible” as a result of stringent lending criteria.

Fraud cases as a total for the year hit £1bn, the highest level since 1995.

Alleged fraud within financial services accounted for £388m of the total, but £220m of this can be traced back to an alleged attempt to hack into Sumitomo Matsui Banking Corporation’s systems.

Speaking to the BBC, Hitesh Patel from KPMG, says: “These figures are bad enough in themselves, but I fear the trend for the next couple of years will be even worse.

“As the global economic downturn takes hold it is very likely that more fraud will come to light.”


Fixed rate deals are becoming attractive

With borrowers holding out for news that the base rate has hit rock bottom and longer term swap rates low, we are inching towards that mythical time when a five or 10-year fixed rate could suit both parties in the mortgage transaction.

B&B appoints brokers for ERC waiver clients

Bradford & Bingley has named the two specialist brokers that will deal with borrowers taking up the lender’s waiver on early repayment charges.

A lesson in evolution

The mortgage market experienced a minor earthquake last week. You may not have felt it and it certainly won’t have registered on the Richter scale but PMS’ decision to change what the trading style stands for, from Premier Mortgage Service to Protection, Mortgages & Savings, was seismic in its way.


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