A government-backed scheme to tackle mortgage application fraud will officially launch on 1 September, enabling lenders to check details of borrowers they suspect of fraud through HM Revenue & Customs.
The Mortgage Verification Scheme has been developed by the CML, BSA and HMRC. It aims to reduce the cost of mortgage fraud, estimated by the National Fraud Authority at £1bn in 2010. Use of the scheme will be limited to cases where lenders reasonably suspect that mortgage fraud is being committed, once they have conducted their own checks. Lenders that have inadequate evidence of declared income and suspect fraud will be able to send details to HMRC to check the income details against information provided in income tax and employment returns. HMRC will then tell lenders whether the...
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