For most adults, a mortgage will be the single largest purchase they make in their lifetime, but with this comes the risk of becoming a victim to a mortgage scam. This not only adds to the pressures of choosing the right lender but also adds to the importance of spotting red flags before falling for them.
Deposit fraud Mortgage deposit fraud stands as one of the most financially devastating scams individuals may encounter in their lifetime, with some experiencing losses totalling tens of thousands of pounds. It is a straightforward yet remarkably effective scheme, catching victims off guard in an already unfamiliar process. A significant number of mortgage applicants become trapped in such schemes as fraudsters continuously refine their methods, devising increasingly convincing and intricate schemes to escape with individuals' hard-earned deposit funds.
These scammers typically offer to refinance the mortgage at attractive terms but require an upfront fee to initiate the process. It’s crucial to note that reputable lenders are only permitted to charge specific upfront fees, such as booking fees, arrangement fees, and valuation fees. Get the latest Record Money news Join the conversation on our Money Saving Scotland Facebook group for energy and money-saving tips, the latest benefits news, consumer help and advice on coping with the cost of living crisis.