View more on these topics

Brokers must be on guard against fraud

Another week, another depressing headline about the economy. Things have become so tough that some people are being dishonest about their financial affairs when applying for a mortgage, according to reports.

payne.jpg

Fraudulent mortgage applications increased by 8% in 2011, says Experian. A number of applicants fabricated information about the jobs they held and attempted to hide their bad credit ratings to secure a mortgage.

Home owners are often warned of the pitfalls associated with buying a home, but it is rarely reported that advisers need to be careful too. If a client is struggling to make ends meet it is a tricky for advisers to handle it sensitively.

But it is vital brokers heed these findings and appreciate the impact that missing a dishonest application could have on them, the client and the industry.

Although the decision to embellish the facts is the client’s, brokers must do their best to ensure they get the truth.

More and more lenders are hiking their mortgage rates and the regulator is soon to announce stricter guidelines to ensure responsible lending as part of the Mortgage Market Review.

It is a sad fact that many people may now find it harder to secure a deal because of the behaviour of others, but it is only right that steps are taken to restore faith in the housing market.

At a time like this the judgment and discretion of advisers becomes even more important.

Recommended

Time runs out on Kent Reliance’s 85% B2L product

Kent Reliance Building Society is withdrawing its 85% LTV buy-to-let deal on May 11, one of the last widely available in the market. All applications in principle for the two-year fix with a 1% fee must be sent in before 5pm this Friday May 11, with the application fully submitted by May 18. Alastair Pate, […]

Rising cost of wholesale funds threatens lending

The high cost of wholesale funding may force lenders to scale back their lending, with Lloyds Banking Group revealing that it is looking to cut its market share by 3%. Speaking to analysts last week about its Q1 results, Antonio Horta-Osario, chief executive of Lloyds group, said he aimed to reduce his bank’s share of […]

2

Marketwatch – May 2012

I had an excellent couple of days at The Strategy Summit, organised by Mortgage Strategy discussing the Mortgage Market Review and the issue of advice, European regulation and the future of buy-to-let – don’t worry, it’s rosy.

Naming a reward programme

Six tips to get your reward programme name right

by Debra Corey, group reward director  Choosing a name isn’t easy. Whether it’s for your new puppy, a bundle of joy or your reward programme, a name determines a first impression – and often a lasting memory. When it comes to your reward programme, the name will determine how your employees feel about it even before […]

Newsletter

News and expert analysis straight to your inbox

Sign up