Joined-Up Lenders Support Initiative to Combat Fraud

Despite recent measures to tackle fraud through a proliferation of regulatory initiatives and increased government protection, with an average of GBP144 billion in mortgages being loaned each year in the UK and mortgage fraud currently amounting to around 0.9% of all lending annually, mortgage fraud remains of paramount concern to lenders, licensed conveyancers and buyers alike.

Mortgage fraud represents a danger to individuals, businesses and ultimately the economy as a whole. Collective understandings of both the impact of and measures that can be taken against mortgage fraud are significantly improving with the recognition that fraud represents a shared problem. However, over just the past two years the mortgage market has changed dramatically. The volume and pricing of products has decreased and the products themselves have, as a result, lessened in both availability and scope. Products such as sub-prime and buy-to-let mortgages of the kind traditionally attractive to fraudsters are now almost non-existent; yet with a contraction in market availability also comes added sensitivity to the implicit cost of mortgage lending and remaining fraudulent activities.

Costs such as conveyancing fees, rising deposit rates and securities have become increasingly important both from the perspective of the buyer and lender, the latter of which two is now subject to amplified efforts from fraudsters and criminals to exploit remaining channels to gain potentially illegal funds.

There has also been increased concern regarding the number of corrupt solicitors and independent financial advisors, often operating from smaller firms, whose practices involve the illegal opening and hijacking of funding opportunities to facilitate the process of committing mortgage fraud. The number of spot checks on mortgage lending and landlords has certainly increased, as has the degree to which due diligence checks are thoroughly carried out. However, only with increased transparency within the entire market can the risk of future fraud be mitigated.

Online solicitors, such as those available at Onlineconveyancing.co.uk, represent one significantly beneficial development in ensuring market transparency and co-operation and present an efficient and adaptive response to the ever evolving and more elaborate types of mortgage fraud. By creating what is essentially a virtual forum in which various expertise can be implemented, they enable the amalgamation of variously connected market players into one comprehensive organisation. As such, they are able to provide high quality services and at the most competitive prices available, and with an abundance of resources at hand, are able to respond to any criminal attacks in a timely and professional manner, thus ultimately protecting the business, the customer and the economy as a whole.