The Financial Services Authority has warned consumers who inflate their income for a self-certifying mortgage, that they are committing a criminal offence. After a mystery shopping exercise by the authority, it was found that three out of forty one mortgage brokers visited were prepared to discuss how clients could inflate their salary.
By inflating salaries, consumers would be committing fraud, as well as being left with a loan they cannot afford. Their new mortgage website, www.mortgageslaidbare.info, urges borrowers to ensure that they disclose all income and outgoings.
Our view
You have been warned! It seems silly that people will risk all and borrow too much.