'Avoid manipulating' details on mortgage applications

Posted: 14 Jul 2009 10:06:27 GMT

People should avoid "manipulating" their financial details in an effort to get their mortgage application accepted, according to the director of external affairs at Equifax.

Neil Munroe noted that this action - known as first-party fraud - often increases during times of financial hardship and that many people do not realise the long-term dangers of exaggerating information such as their salary.

He pointed out that in the current economic climate, lenders are carrying out "more thorough checks" on mortgage applications and there is a "much stronger likelihood" that fraud will be discovered.

"The best policy is to be honest and to see where you go from there," he advised potential property buyers.

Mr Munroe concluded that those who do commit mortgage fraud could have a difficult time trying to secure credit elsewhere in the long term, as information is shared among providers.

Some 37,400 home loans were taken out in May, according to figures published by the Council for Mortgage Lenders last week.

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