September 2, 2011 | 
Author A new schedule has been launched, The Mortgage Verification Scheme (MVS), in an attempt to combat potential mortgage fraud.
The scheme has been set up by the
HMRC will then risk assess the information in an attempt to see whether it agrees with the employment/self employment income details held on tax records. Of course if the information does not match, it is likely the mortgage will be refused by the lender.
Of ocurse any query like this could also lead to an investigation into the individual by the HRMC, they would obviously be interested if a higher figure of income is shown on the mortgage application compared to the applicants Tax Return.
The CML believe that the new scheme can actually be a benefit as it can work both ways. a CML spokesman said:
‘There are people whose mortgages have been approved because of the checks – they can make lenders more confident.’
Lenders who have piloted the scheme believe they have already weeded out potnetially fraudulant claims!
Colin Barclay, Assistant Director, HMRC Risk and Intelligence Service, said :
‘HMRC are determined to tackle fraud wherever we can. The Mortgage Verification Service is an unprecedented opportunity for HMRC and lenders to work together to combat fraud in the mortgage industry.’
However at present the scheme is voluntary as it is supposed to be limited to cases where lenders reasonably suspect mortgage fraud may be taking place. The cost to lenders is £14 plus VAT to refer the applicants details to HMRC.
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Categories: News |
Tags: CML, Council of Mortgage Lenders, HMRC, mortgage applications, mortgage fraud, mortgages, Property, Tax | 
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