Working together to prevent mortgage fraud

Mortgage fraud happens when false or altered information is used to secure a mortgage. It is estimated to cost the UK £1.3 billion annually, with 84 in every 10,000 applications suspected to be fraudulent.*

Who to keep an eye out for

People don't always choose to commit fraud. Mortgage fraud can be committed by genuine but desperate people who don't realise they are committing fraud, or the implications of what they are doing.

They are often driven to secure a mortgage on a property after facing pressure from their family and they may do this by exaggerating their income. As many as 1 in 6 adults will exaggerate their income to secure a mortgage.**

There are professionals who commit mortgage fraud for the sole purpose of financial gain. They are experienced and often linked to organised criminal groups. They will have a deep understanding of the industry and how to avoid controls.

What to look out for when reviewing documents and information

Payslips - when you are collecting your clients' payslips, keep an eye out for:

• Tax - correct tax code, regular payment of tax and correct tax calculations.
• Rounding - rounded numbers are extremely rare on genuine payslips.
• Benefits - check that additional benefits match the wage and job status.
• Format - check the format matches the type or size of the employer.

Staged income - when you are checking your clients' income look out for staged income. Staged income is where applicants create fake income streams and regular payments throughout the application process, which end after completion. Be aware of:

• Applicants who are only employed for a short time before the mortgage application.
• Salary credits paid by 'Faster Payment' instead of BACS.
• Changes in job types that appear out of line with previous roles.
• A recent second job where income is needed to support the application.
• Employers who are small or difficult to trace, or are a family member.

There are also steps you can take to help us protect against mortgage fraud:

• Please report any suspicions as soon as possible. Please email tellsid@nationwide.co.uk or get in touch with your Business Development Manager, and we'll do everything we can to investigate.
• Ensure the clients details you are entering into our systems are accurate (mobile, email and address) and do not enter your own details.
• If you are working with a new client, check they are who they say they are. Use Companies House, LinkedIn or other social media channels.

*Fraud costs the UK economy £193 billion a year, equating to more than £6,000 lost per second every day - Experian UK.

**Cifas research reveals 1 in 6 UK adults have exaggerated earnings to secure a mortgage.