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  • Hayley Leith

Why Mortgage Fraud Never Pays Off

When applying for a mortgage, you need to provide information about your circumstances - such as your income, your job, and your typical spending habits. The lender then decides whether or not to offer you a mortgage, and how much they’d be prepared to lend you.

However, some borrowed submit fake or doctored documents to make it appear as though they’re earning more money than they actually are.

Presumably, they hope this factor will increase their chances of getting a mortgage.

What these borrowers may not realise is that making false claims on a mortgage application is classed as fraud and it can have serious consequences.

Mortgage fraud is rising

Fraudulent mortgage applications rose by 5% in the first six months of 2019, when compared to the last six months of 2018, with 13% of British adults believing that it is ‘reasonable’ to exaggerate income on a mortgage application. (1)

Fraud by producing a false document rose by 14%, whilst fraud by submitting altered documents increased by 32%. (1)

It was found that nearly half (45%) of those caught committing application fraud were aged between 31-40 years old. Coincidentally, research carried out revealed that people in the 35-44 age category were more likely to believe that exaggerating their income on their mortgage application was more ‘reasonable’ than any other age group. (1)

The consequences of committing mortgage fraud

Taking out a mortgage based on false claims and information can have serious repercussions:

  • The borrower might not be able to afford their mortgage, which could lead to their home being repossessed.

  • A lender could ask the borrower to pay the remainder of the mortgage immediately.

  • The borrower could be blacklisted from ever getting another mortgage in the future.

  • The borrower could be reported to the police - this could lead to a criminal conviction and even a prison sentence.

Lender and brokers are on the lookout for fraud

Lenders are always looking for possible fraudulent borrowers when an application goes through to the underwriting process, which is why they weigh up the risk of offering a mortgage to a borrower.

Here at Mortgage Thoughts, we take mortgage fraud very seriously. Our team thoroughly checks all documents before any applications are submitted.

If you’d like to apply for a mortgage with a trusted and award-winning mortgage broker, contact Mortgage Thoughts today.


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Your home may be repossessed if you do not keep up with repayments on your mortgage. Think carefully before securing other debts against your home.  You may have to pay an early repayment charge to your existing lender if you remortgage.

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