Darren Pescod, managing director of The Mortgage Broker, warned brokers that lenders are increasingly on the lookout for scheme abuse and mortgage fraud in their post-application checks.
Buy-to-let focused The Mortgage Broker has accused some intermediaries of being unprofessional and lazy by only using lenders they are familiar with or lying on applications.
Darren Pescod, managing director of The Mortgage Broker, warned brokers that lenders are increasingly on the lookout for scheme abuse and mortgage fraud in their post-application checks.
He said: “We have seen evidence of mortgage brokers securing mortgages for investment properties, which are then inhabited by family members.
“Or they have arranged a mortgage for an investment property, that is either a multi-let, Airbnb or student accommodation, without informing the lender.
“This is highly unprofessional. If a lender finds out, it could withdraw the mortgage and in a worst case scenario, the client could be slapped with mortgage fraud, which will severely affect their ability to borrow funds, or obtain mortgages in the future.
“Some landlords don’t understand the severity of a little white lie to the lender, or understand the implications of not divulging their full intentions with the property, or their personal situation.”
