Mortgage Fraud Lawyer

Mortgage fraud lawyers can assist you in defending against accusations that you submitted a fraudulent mortgage application to increase your chances of approval, to avoid a higher interest buy to let mortgage, or to falsify the anticipated value of the property.

Mortgage fraud accusations are taken seriously because of the significant financial stakes and there is the potential for harsh consequences, such as steep fines and lengthy jail sentences. In addition to all of this, if it is discovered that you received the money to purchase the home fraudulently, your family’s home may be in danger.

By proving that the information you supplied during the application process was true to the best of your knowledge, you can increase your chances of successfully defending against a charge of mortgage fraud by working with our professional mortgage fraud lawyers.

The Pearl Lemon Legal team has extensive experience in all aspects of UK property law, including mortgage fraud, and can offer you the accurate, efficient and sympathetic legal guidance you need at what can be a very scary time.

What is Considered Mortgage Fraud?

Mortgage fraud is a crime that entails getting a loan by making false statements on your application, and it is becoming more and more prevalent in the UK. However, as we often see as a law firm offering the service of an expert mortgage fraud lawyer team, those considered to be committing the crime are often completely unaware that they have. Until they are accused of such a crime.

The problem is that when you apply for a mortgage in the UK, you are still committing mortgage fraud even if you tell a “little white lie.” You run the risk of endangering your house and breaking the law if you withhold information, understate your income or financial status, or withhold any information about your debts like loans or credit cards.

This holds true whether you are purchasing a new home or merely refinancing an existing one. What might seem like a harmless fabrication can have serious legal consequences.

What Kinds of Mortgage Fraud Can People Be Accused Of?

As we mentioned, mortgage fraud in the UK is on the rise. Obtaining a mortgage has grown more challenging recently as lending institutions have tightened their borrowing requirements. As a result, more people are submitting false mortgage applications in order to purchase a home. According to research, roughly 4 out of every 1000 mortgage applications are fraudulent. If you find yourself facing legal issues related to mortgage fraud, it’s crucial to seek the expertise of a Mortgage Fraud Lawyer who can guide you through the complex legal processes.

That fraud might not be what you think of as fraud, however. Although there are many different types of mortgage fraud, 25% of all mortgage fraud involves lying about income. Around 20% of mortgage fraud involves lying about an employment status, and another frequent sort of mortgage fraud is attempting to conceal a poor credit history in order to obtain a mortgage loan.

Failure to disclose the usage of the property to the lender constitutes another type of mortgage fraud that is being seen more often these days. For instance, a borrower may misrepresent to a mortgage lender that a property is being purchased for their personal use when, in fact, it is being purchased for rental purposes. They anticipate avoiding the higher buy-to-let mortgage rates in this way, but run the very real risk of being charged with mortgage fraud in addition to dealing with significant financial penalties.

Why Do People Commit Mortgage Fraud?

The simple fact is that while it is getting harder to obtain a mortgage in the UK for a large sector of the population, the goal of homeownership is one that most people still aspire to, as Britons have for decades. Often, it might seem like omitting something, or changing something, on a mortgage application is a harmless way to obtain a mortgage, and if you can pay what you owe every month, where’s the real harm?

However, unfortunately, as it is believed that organised crime is also involved in the rise in mortgage fraud in the UK a greater spotlight has been shone on the issue.

Due to its potential for profit and low inherent risk, mortgage fraud is a favorite among organised crime groups. It is frequently used as a method of laundering money gained from criminal operations including drug trafficking and supply.

One way it occurs is by exaggerated property values, falsified paperwork, and inflating the valuation of commercial real estate with fictitious leases.

As mortgage fraud lawyers our primary work is with consumers however, and often with those who were unaware that they were committing a crime. Ignorance is technically not a defence, but if your case is presented by a seasoned and skilled mortgage fraud lawyer, like those on the Pearl Lemon Legal team, it may lead to reduced penalties and the avoidance of a custodial sentence.

How Often is Mortgage Fraud Discovered?

Many individuals who attempt to commit mortgage fraud, such as lying about their financial situation to obtain a mortgage, do end up being caught.

This may occur as a result of standard credit checks or through the Mortgage Verification Scheme, which is operated by HMRC, the Council of Mortgage Lenders, the Building Societies Association, and other organizations. Lenders can give HMRC the information about applicants, who will then cross-reference it with their tax and employment records.

How is fraud in mortgages discovered?

A number of unexpected conditions are likely to trigger suspicion in addition to the typical checks and balances performed by lenders. Numerous remortgages and sales of the same property, a significant and inexplicable increase in the purchase price, a deposit paid by a third party, and the payment of the proceeds of the sale to a party other than the seller are a few examples.

Some accusations of mortgage fraud come well after a mortgage has been granted and a sale closed. This is common when a ‘homeowner’ has made use of a standard mortgage loan, rather than a buy to let mortgage loan, to purchase a property for their own use that it can then be proved they never lived in, but let it out instead. And in the age of Airbnb this can be a grey area of the law that it will take a good mortgage fraud lawyer to unravel.

Why Hire A Mortgage Fraud Lawyer?

When a person is suspected of making a false statement, such as one about their salary, in order to apply for a residential mortgage, that is considered the least serious type of mortgage fraud. If it does go to court, it is unlikely to result in a custodial sentence. However, financial penalties may be levied, and the reputational damage can be significant, especially in terms of a future profile with lenders.

If it is determined that a conspiracy to defraud occurred as a result of a mortgage application, all participants to the transaction may be charged with conspiracy to defraud, and depending on the gravity of the case, the court may impose custodial sentences if proven guilty.

It is crucial that you contact a mortgage fraud lawyer as soon as possible if you believe you may be charged with any form of mortgage fraud. Given that mortgage fraud can be extremely complicated, as we explained earlier, it is crucial that the lawyer you select is knowledgeable about this type of fraud and how it is viewed in the eyes of the law.

As experienced mortgage fraud lawyers, we know first hand that most people accused of mortgage fraud have never been convicted of a crime, are of otherwise excellent reputation, and are unfamiliar with this complex aspect of the legal system.

Our specialized mortgage fraud lawyer team have experience defending complicated fraud cases and are aware of how crucial your good name is to you, and will do all they can to protect it, your assets and your personal freedom.

Mortgage Fraud FAQs

What is mortgage fraud?

Mortgage fraud is a crime that involves obtaining a loan by making false statements on your mortgage application. It includes actions like withholding information, understating your income or financial status, or failing to disclose any information about your debts such as loans or credit cards.

What kinds of mortgage fraud can people be accused of?

People can be accused of various kinds of mortgage fraud, such as lying about income, employment status, concealing a poor credit history, and failing to disclose the actual usage of the property. For instance, a borrower might misrepresent that a property is being purchased for personal use, when in fact, it is being purchased for rental purposes.

Why do people commit mortgage fraud?

People commit mortgage fraud often to secure a mortgage loan they may not have been eligible for otherwise. The goal of homeownership drives many to overlook the legalities. However, it’s worth noting that mortgage fraud is also a favored method for organized crime groups to launder money from illegal activities, which is leading to increased scrutiny in this area.

How often is mortgage fraud discovered?

Mortgage fraud is often discovered during standard credit checks or through the Mortgage Verification Scheme run by HMRC and other organizations. Unexpected conditions such as multiple remortgages and sales of the same property, a significant increase in the purchase price, and a deposit paid by a third party can trigger suspicion.

What are the penalties for mortgage fraud in the UK?

Penalties for mortgage fraud vary depending on the gravity of the offense. For a less serious case, such as making a false statement about income on a residential mortgage application, it’s unlikely to result in a custodial sentence but could involve financial penalties and significant reputational damage. In cases where it’s determined that a conspiracy to defraud occurred as a result of a mortgage application, all participants to the transaction may be charged with conspiracy to defraud, and custodial sentences may be imposed if found guilty.

What can I do if I am accused of mortgage fraud?

If you are accused of mortgage fraud, it’s crucial to get in touch with a mortgage fraud lawyer as soon as possible. Given the complex nature of this area of law, having an experienced lawyer who understands the nuances of mortgage fraud can help protect your rights, your reputation, and your assets.