|
FSA warns of BTL ‘fraud'
The Financial Services Authority has revealed that it has uncovered several instances of buy-to-let property investors lying to bank lenders...
The buy-to-let boom last year saw a record 330,300 new mortgages taken out by landlords, a 57% jump on the previous year, despite falling rental returns, reports the Financial Times.
But the FSA has warned that some prospective landlords have lied to lenders about their income, pretending that they intended to live in the properties and even masquerading as first-time buyers.
It warned that such behaviour, which 'would constitute potential fraud', would allow them to obtain bigger and cheaper loans, the FSA said.
It said there was a 'significant risk' that banks 'did not know the true quality of their lending book'.
|