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  • Landlords in Distress

    Mortgage fraudster struck off from profession



    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.

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    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 video
    This 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.

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    _________________________________________________________________________


    The above post is not financial advice, its often me rambling - passing time on a coffee break.
    If you are looking for the Best BTL Mortgage? Call the Specialist Team at Bespoke Finance.


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    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?

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