Instances of mortgage fraud are rising due to the stricter constraints placed on applying by lenders, an industry body has said.
Firms belonging to the Council of Mortgage Lenders have experienced an increase in customers using false information when applying for homeowner loans, something that may interest those trading property-related shares on the stock market.
"We don't keep figures on mortgage fraud but from anecdotal evidence we do know that it has increased," spokeswoman for the CML Sarah Robson remarked.
The body said that inflated incomes were being used by some who are applying for a mortgage in an effort to get on to or move up the property ladder while prices are relatively low.
Ms Robson added that the jump in fraudulent activity "is to be expected" in the present economic climate, but insisted that lenders are "vigilant" when checking applications.
Figures released by Halifax last week revealed that house prices declined by 0.5 per cent during June.
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