Trust your gut instinct: tackling the rise of mortgage fraud

When I say forensic, I don’t use the term lightly. It never fails to surprise me when I hear that, routinely, brokers don’t check to ensure that the amounts shown on an applicant’s payslips match what’s on their bank statements and also their P60s, for example.

Or that SA302s cross reference correctly with balance sheets and dividend payments. Or that the applicant really is going to let the property out and can evidence the fact that it’s on the market for rent, rather than applying for a ‘back door Buy to Let’ mortgage then live in the property themselves. It’s not hard – it just comes down to being meticulous. Which all comes back down to ensuring that your internal processes are robust and that all your team follow them to the letter. 

Also, it’s crucial to ask questions... lots of questions. It seems that some advisers shy away from asking for more information if they aren’t 100% sure that the evidence being presented is correct. It’s almost as though they prioritise not wanting to make their client feel awkward over protecting their own business. Of course, no one wants to make an applicant squirm, but on the other hand, this is your FCA licence we’re talking about, and it’s up to you to protect it.

So, if something doesn’t add up, don’t be afraid to question it further. Of course, the right ‘bedside manner’ is essential, but at the end of the day, the onus is on you to ensure that the case you are presenting to the lender is truthful and correct. No one else.

My last piece of advice? Trust your gut instinct. If something doesn’t feel right, keep digging away, asking questions and for paperwork until you are entirely satisfied. Use social media to corroborate anything you’re suspicious of – many people overlook this but again, it’s a useful tool to cross match personal details that you think may be slightly less than truthful. Sure, it may take you a bit longer to bank the business, but wouldn’t you rather be entirely confident that if you were ever audited you’ve got nothing to worry about? Exactly.

So, next time you’re reviewing a case and something doesn’t quite add up, make like Sherlock Holmes. Deerstalker hat optional.