Increasing levels of mortgage fraud
Figures released last week suggest that the number of cases of mortgage fraud having been rising for five years. In 2011 34 out of every 10,000 mortgage applications were deemed to be fraudulent. Most (93%) of such cases relate to the misrepresentation of personal information by persons that are, or have been, in financial difficulty. We assess the implications for persons applying for mortgages after having completed trust deed Scotland arrangements.
Our trust deed Scotland forum often contains threads in which the opportunity to obtain a mortgage after having completed a Scottish trust deed is discussed. The current reality is that mortgage availability is extremely limited for anyone that has experienced recent difficulty with credit repayments. A trust deed arrangement in Scotland is a formal insolvency process used to deal with serious debt problems, so mortgage lenders can become extremely wary even after a trust deed has been completed.
The mortgage fraud statistics mostly include people who are trying to cover up poor credit history, or making untrue claims about their employment and general financial situation. Young well-educated professional people, younger less well educated people in smaller towns, and middle-aged skilled workers, are all at increased risk of committing such fraud. This is unsurprising as these groups are also at increased risk of falling into the type of debt that makes getting mortgages tough (and therefore perhaps also of needing to use trust deed Scotland services).
Anyone that has reached the end of their trust deed in Scotland will therefore need to be very cautious, should they later make a mortgage application, not to misrepresent information that a mortgage lender would consider to be “material” to the assessment of an application.
For example, some mortgage application forms ask whether an individual has ever been insolvent, perhaps by way of using a trust deed Scotland for example. As a Scottish trust deed no longer shows up on a credit file after six years some people may be tempted to not include the fact that they previously had a trust deed Scotland on a mortgage application form. As well as misrepresenting the facts and potentially committing fraud, a person who chooses to do this is at significant risk of discovery as the facts could potentially be checked in ways other than using a credit report (for example Edinburgh Gazette archives).
With further tightening of mortgage lending rules on the way from the FSA, the outlook for those who have completed trust deed Scotland arrangements seeking mortgages in the future certainly don’t seem to be getting any easier. Tighter control of mortgage lending is also encouraging tighter monitoring and detection of fraud by mortgage lenders. As great as the temptation might be to make as an attractive a mortgage application as possible, applicants that have completed a trust deed Scotland must remember that transparency about the past will be required to avoid the risk of being accused of mortgage fraud in the future.
For further trust deeds information you may wish to visit our trust deed Scotland forum. The shared experience of more than a thousand forum members can make a great positive difference for those planning to access mainstream credit once again in the aftermath of trust deed Scotland completion. Experts are also on hand to share their knowledge on subjects related to debt and trust deeds.
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