FSA bans firm for remortgage scam; Directors arrested

Several of the firm's directors have also been arrested by Northumbria Police following the FSA's investigation of the fraud. Principals and mortgage introducers at Newcastle Home Loans (NHL) knowingly submitted remortgage applications to fund property purchases, which resulted in the lender advancing sums which were considerably higher than the purchase price of the property. In total, the lender referred 157 cases to the FSA including 20 regulated mortgages. In December 2005, the lender raised concerns over the accuracy of property valuations after a review of a number of applica...