16th November 2011
The new scheme to combat mortgage application fraud was launched on 1 September 2011. The mortgage verification scheme has been developed by HMRC, the Council of Mortgage Lenders and the Building Societies Association.
Mortgage lenders will only use the scheme where they suspect mortgage fraud, following their own checks. Where they have inadequate evidence of declared income and suspect fraud, mortgage lenders will send HMRC information from the mortgage application using a secure electronic platform. HMRC will cross check the income details declared to lenders against information provided in income tax and employment returns. It will then advise lenders whether or not the details match. Lenders will use this information in making their lending decisions.
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