HMRC and mortgage lenders working together to combat mortgage fraud

HMRC, the Council of Mortgage Lenders and the Building Societies have announced that they are now working together in a new scheme designed to combat mortgage fraud.

Under the scheme mortgage lenders will send details from mortgage applications to HMRC so that they can “cross-check” this information against the employment and income tax returns provided to HMRC. In the event that this information does not correspond the lenders will be informed and they will be able to take this information into account when making a decision on whether to lend or not.

Whilst the scheme in intended to be used where the lenders suspect mortgage fraud, it is important to note that as a result of this scheme HMRC will have a lot more information at hand when investigating their own cases for under-declared income.

 If you would like more detailed information on this subject please give one of us a call on 01733 371180 and we will be happy to help.