Making false applications is fraud

The Citizen’s Advice Bureau has urged consumers not to submit false applications for a mortgage, after a Manchester woman was given a six-month suspended sentence for fibbing about her salary in order to secure a huge loan.

There were suggestions the woman had been encouraged by her mortgage broker to give false details of her earnings in order to qualify for a bigger loan.

Even though she was earning only £6,000 a year as a care worker, the lady claimed she earned a salary of £35,000 working as a senior midwife at Manchester Royal Infirmary.

A spokesman for the Financial Services Authority (FSA) stressed that lying about your income when making a mortgage application is a serious offence.

"We would strongly advise consumers not to submit false applications as they are committing fraud and could lose their home if they are not able to keep up with repayments," he warned.