Mortgage Loan against Property

Hypothecary loans against property

Mortgages are on the increase - how can you protect yourself against them? Prior to the crisis, mortgage scams were common. As a sector was too employed to implement adequate regulations and controls on claimants, self-certified mortgage applications were so widely used that they were referred to as 'lying loans'. Purchasers, estate agents and mortgage advisors were all able to self-check their income without the need for evidence.

Although it may seem special in London that we are returning to the rush of exploding real estate values, closed bidding and Gazping, the mortgage markets are a more cautious place, with tighter regulations imposed in April's Mortgage Markets Review and self-certification mortgage loans now saturated. However, this does not mean that the mortgage environment is now free of cheating.

APLICATION FRAMEWORK aplication framework is when the purchaser intentionally provides imprecise or deceptive information about his mortgage request. "Creditors are most interested in anyone who wants to secure a buy-to-lease mortgage on a property where they actually want to be. If someone is stealing another person's identity, as well as their loan histories, this can sometimes result in mortgage frauds - if that someone then saves a mortgage on other people's homes with their new counterfeit identities.

Sometimes, in harsh cases, home owners may find that the fraudsters have used their identities to obtain home loan or even to sell the house without the owner's knowing. These changes of owners allow the new registrated owners to save cash against your property if the changes are not collected during the claim procedure.

Thus, owner of empty real estate or buy-to-lease lessors are particularly susceptible to this kind of scam. Concerning the extent of the scam, the standard is not high. "The new mortgage regulations launched in April 2014 should significantly cut the number of wrongdoers. However, this will not completely stop the scam, nor will it stop you as a home owner or buy-to-lease investors from becoming a target of ID or registry scams.

Now, due to the scale of the cases that the land registry and the lender frauds department have to cope with, there are several possibilities. Safeguard your identity: When you have lost one of your ID documents - e.g. a valid ID card, driver's license or your ID card - please notify theft immediately and ask for it to be exchanged as soon as possible.

"Be sure you always see what the brokers have presented to the lenders on your behalf," says Carr, "and when you buy a property, make sure the agents have reviewed who the sellers are and verify their real property."

Mehr zum Thema