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A convicted mortgage fraudster who completed three false applications worth £228,000 including for a holiday home in Spain has been struck off the social work register.Anita Henderson, formerly a social worker at Sunderland City Council, admitted to lying on three mortgage applications – at one point claiming to have income almost £100,000 higher than her actual income.
Henderson obtained the three mortgages from building societies between 2006 and 2008 but the frauds were not revealed until almost a decade later when criminal proceedings were initiated.According to the Health and Care Professions Tribunal Service (HCPTS), Henderson’s first fraudulent application claimed a net profit of just over £33,000, when her real income was in fact just £9,000, to which the building society advanced £68,000.
The second mortgage of £97,000 was advanced against declared income for two years of £77,000, again for the purpose of buying a property, when her income was in fact just £66,466.
The third mortgage of £63,000 was borrowed against a property owned by Henderson where she declared income of £101,592 when her real income was just £3,000.
Full/source story I have recently become aware of a property trainer/guru who is advocating that his mentees create a "fake" income to improve their "mortgage-ability". In a video on youtube, he describes how your friend pays you a "monthly salary" each month to the level of "income" you need to buy a residential property, and then at the end of the month, you repay your friend the same money, so that he can benefit from increased borrowing as well from a false apparent regular income.This money is re-cycled ad. infinitum to keep up the appearance that you are earning a lot more money than you are.I checked with a number of professional sources, and they all confirmed that this would be out and out mortgage fraud and would be unlikely to get past any lender anyway.A warning to anyone thinking of doing this: If you get caught out, your name will be added to the CIFAS/Hunter list and you will find that you are black-listed from borrowing ever again!It is also worth noting that the fraud in the above story was perpetrated 10 years ago, but was found out about eventually and the fraudster has now lost their career as well as no longer being able to secure finance.SEE ALSO - Scammer jailed for mortgage hosts fraudUP NEXT - Two brothers found guilty of mortgage fraudDON'T MISS - Anthony Gold announce victory - JV fraud caseNOW WATCH:
Vanessa Warwick Landlord and Co-Founder of PropertyTribes.com **If you have got value from Property Tribes, find out how you can support it in remaining a free to use community resource**
Vanessa, Can you message me a link to the video?
It is highly unlikely to get past the lender, given it would require further evidence proofs than just "appearing" in a bank account.Although it is concerning that people would advice this fraudulent route.
EDIT: Watched the videoThis is clearly deception and trying to get a mortgage by tricking the lender - is not going to end well.It's up to a court to decide if its fraudulent but im sure a lender would love to test it.
You can get good mortgages when self employed. So faking employment seems rather unnecessary.
_________________________________________________________________________My posts are not financial advice but often me rambling - passing time on a coffee break.Our team at Bespoke Finance offers Limited Company Buy-to-Let and Cheap Life Insurance._________________________________________________________________________
Sounds like the days of self certification, my understanding is lenders generally accepted that incomes on applications may have been inaccurate but choose to just file the details. I wonder what prompted this applicant to be investigated and prosecuted.
Does this mean other self certification applications may be looked at more closely after all this time?
Any lender would look at the outgoings showing up on the statements, not just the income.£ 2000 in on the first of the month followed by£2000 out at the end of the month is pretty obvious.
I always need to provide SA302s. These would be pretty hard to fake and are surely standard practice now?
The paying each other income would work fine if you were prepared to pay income tax and NI on it. I don't think many would want to do that on fake income!
Yep, SA302s for the self employed or P60s for the employed, not sure there'd be a way round this these days, and if there were, it would probably be dodgy!