Brokers encouraging clients to lie on mortgage apps


The Financial Services Authority has uncovered evidence suggesting mortgage brokers encourage their clients to lie on sub-prime mortgage applications.

The regulator says three firms were identified as potentially assisting customers to obtain a mortgage where their income would not meet the lenders criteria by possibly inflating income on the application form. It says the firms in question have been referred for investigation and possible enforcement action. This discovery is the result of a review carried out by the FSA into the practices of small brokers with requirements on selling and advising in the sub-prime market. The FSA says the review revealed both good and bad practices but that:“overall, there were too many cases wher...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes



Already a Professional Adviser member?


More on Mortgages

Client conundrum: Mortgage overpayments versus investments

Client conundrum: Mortgage overpayments versus investments

1.4 million people will see mortgage deals end this year

Laura Suter
clock 22 February 2023 • 3 min read

Summer economic update: Sunak confirms stamp duty holiday in 'mini-Budget'

Mini Budget

Hannah Godfrey
clock 08 July 2020 • 2 min read

FCA sounds alarm on equity release advice

'Tick-box exercise'

Hannah Godfrey
clock 17 June 2020 • 1 min read