Mortgage Fraud | OMG | How To Prevent Your Property Being Taken Illegally

Welcome back to the WIS channel and podcast! My name is Gemma, and here we talk about money, mortgages, and positive money mindset.

Today’s episode focuses on mortgage fraud, including recent news stories and practical ways to protect yourself. Joining us again is Ifthi, a trained accountant and mortgage advisor with over 10 years of experience, and one of the founding directors at WIS.

1. What is Mortgage Fraud?

Gemma: Can you explain what mortgage fraud is?

Ifthi:

Mortgage fraud occurs when someone fails to disclose important information to the lender.

Examples include:

• Losing a job but not informing the bank after receiving a mortgage offer.
• Failing to disclose commitments not on your credit file.
• Even small omissions or inaccuracies can constitute fraud.

2. What Are Property Hijack and Unencumbered Fraud?

Gemma: Can you explain the recent case in the news?

Ifthi:

A property owner was working away from their main house, leaving it unoccupied.

Fraudsters stole his identity and managed to sell the property without his knowledge.

Neighbors noticed unusual activity and alerted the owner.

These cases are rare but highlight the importance of protection and vigilance.

Gemma: What made this case complicated?

Ifthi:

Technically, the new owners thought they were acting in good faith.

Courts often recognize transactions done in good faith until fraud is proven.

Resolving such cases can take time and be very stressful for property owners.

3. How Can You Protect Yourself from Mortgage Fraud?

Ifthi:

Land Registry Alert Service

• A free service to register your property.
• Alerts you when transactions or searches are carried out on your property.
• You can register up to 10 properties, which is sufficient for most people.

Solicitor Monitoring Service

• Some solicitors offer a service to monitor your property for charges or transactions.
• If something happens without your permission, the solicitor must contact you first.
• This service may charge a fee, but it provides extra security.

4. How Can You Prevent Identity Fraud?

Gemma: Any general tips for preventing identity fraud?

Ifthi:

Keep documents confidential, including passports and official papers.

Shred letters and documents that are no longer needed.

Be careful with passwords and log out from online accounts.

Monitor social media and email for unauthorized access.

Credit Reference Agency Alerts

• Some agencies, like Equifax, offer paid services to alert you if someone tries to get credit in your name.
• These services are affordable and provide extra monitoring for those concerned about identity theft.

5. Key Takeaways

Ifthi:

Identity fraud is often the root cause of mortgage fraud.

Keep personal and financial information confidential.

Utilize free and paid services to monitor your property and credit.

Prevention is easier than resolving a fraud case, which can be time-consuming and stressful.

Gemma:

These points may not apply to everyone, so check with a professional if unsure.

Reminder: A mortgage is secured against your home; failure to keep up with payments may lead to repossession.

We’ve included a link to the Land Registry alert service for easy access.