What Do You Risk in Case of Mortgage Fraud?
Updated on Monday 12th December 2016
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The annual mortgage fraud in the UK rises at about £ 1 billion, which demonstrates it is a major problem in the country. In simple words, the mortgage fraud is a crime that involves illegal financial gains from the property market in the UK. The mortgage fraud takes place when a client buys a house at a low price. This is the moment when an evaluator agrees to value the home or apartment at a much higher price. The new proprietor then sells the assets at overestimated revenue, giving the evaluator a certain part of the incomes.
Organized criminal groups purchase properties with false identities and then fail to pay the mortgage. Our criminal solicitors in London can provide you with details and legal assistance if you are being accused of such criminal offence.
Opportunistic mortgage fraud in the UK
Particular buyers may commit mortgage fraud by contracting a higher mortgage than they are allowed, with untruthful information about income, identity, debt obligations, employment and about the prices to be paid. The buy-to-let market in the UK is predominantly weak to mortgage fraud, whether through new-built apartment facilities or large-scale restoration developments, and many commercial assets are caught up. If you consider you have been involved in a mortgage fraud, you may solicit legal assistance from our criminal defence solicitors.
The sentence for mortgage fraud in the UK
If found guilty, fraudsters may receive about two years of imprisonment, most of them without any suspension. It is good to know that the mortgage fraud is a serious offence which can be punished with sentences, fines or payment restitutions. A probation sentence is applied for a mortgage fraud conviction besides fines and implies certain rules specified by the Court of Law in the UK. The offender will have to make periodical reports to the probation officer in charge of his case.
Types of mortgage frauds in the UK
There are any types of mortgage frauds and criminals have no limits when attempting to deceive someone. The main mortgage frauds encountered in the UK are the following:
A professional fraud implies schemes and collaborations by multiple parties like mortgage brokers, accountants, bankers or real estate agents. The main purpose is to get money without taking a house or a building for a potential client. A borrowed fraud implies home borrowers who avoid offering significant details and make misstatements to gain a quick profit or a house. This kind of fraud is also known as fraud for housing.
If you find yourself in this situation, you may contact our team of criminal defence solicitors in London to ask for legal assistance and guidance.