Brilliant - Northern Crock grants serving prisoner 9 buy-to-let mortgages!!!!!!!!!!!!!!!!! USING THE PRISON AS THE CORRESPONDENCE ADDRESS!!!!!!!!!!!!!!!!!!!!

FTAdviser- Home - Financial Adviser - News - Prisoner gets 'approval' for 9 mortgages

A serving prisoner has been able to obtain multiple buy-to-let mortgages from a well-known crisis-ridden mortgage bank despite using the prison as his official address, it can be revealed.

The man, who is believed to be a mortgage broker directly regulated by the FSA, but is also affiliated to one of Britain's best-known IFA firms, applied on nine separate occasions for mortgages from the troubled bank and on each occasion was given a loan.

The barefaced scam, dreamed up in the prison cell, has been the talk of the mortgage broker sector in the North East all of last week with one leading source asking not to be named in any Financial Adviser story.
He said: "Do not name me, but it is scandalous that something like this can happen without the bank even checking out his true identity. But knowing the people who worked for that lender I am not surprised. So much for lenders knowing their customers."

The only mortgage bank on the record as facing liquidity problems in Britain is Northern Rock, but John Watson, a spokesman, denied knowing about such unusual would-be landlords. He said: "I am not aware of any investigation into potentially fraudulent buy-to-let mortgages." Other mortgage banks also denied any knowledge of the applicant.

It is not clear if the scandal, which many believe may be the tip of an iceberg, has been reported to police or the City regulator, but Northumbria Constabulary has denied having received a complaint fitting the details of the scam.
Det Supt Oliver Shaw of City of London fraud squad said: "It could be legal. There is no bar on prisoners taking out mortgages or any other financial products as long as they do not lie on their application form about their income and personal circumstances."

Buy-to-let mortgages are not regulated by the FSA as they are considered to be commercial arrangements.

The City of London police will be publishing a report on mortgage fraud at the end of February.