Taxman to run rule over mortgage claims
Mortgage lenders will 'hire' the taxman to match claims with tax returns to help allay fraud concerns
THE TAXMAN is helping lenders to cut down on mortgage fraud under a new scheme.
HM Revenue & Customs will be paid to check whether mortgage applicants’ details match their tax declarations. The Mortgage Verification Scheme is being set up alongside the Council of Mortgage Lenders and the Building Societies Association.
The mortgage industry is concerned about the level of fraud, where fake income figures are used to borrow more money.
The voluntary scheme will be limited to cases where lenders reasonably suspect fraud has taken place. The taxman will be paid £14 plus VAT to undertake the checks.
Colin Barclay, assistant director, HMRC risk and intelligence service, said: “HMRC is determined to tackle fraud wherever it can. The Mortgage Verification Scheme is an unprecedented opportunity for HMRC and lenders to work together to combat fraud in the mortgage industry.”
There are 11.3 million mortgages in the UK, with loans worth more than £1.2trn.