Umbrella company contractors looking for a mortgage may be interested to hear that HMRC and mortgage lenders have got together and launched the Mortgage Verification Scheme aimed at reducing mortgage fraud.
Under the scheme, which has been set up in conjunction with the Building Societies Association and the CML, HMRC will be able to verify whether the income information mortgage applicants provide tallies up with the tax they declare. Currently, the UK has a problem with mortgage fraud whereby applicants over inflate their income in order to obtain a home loan.
The scheme is voluntary and will be limited to instances where a lender has reason to suspect that fraud is taking place. HMRC will receive payment of £14 plus VAT for each check it undertakes.
HMRC assistant director for the risk and intelligence service, Colin Barclay, said the Revenue is determined to tackle fraud and this scheme provides a great opportunity for the Revenue and mortgage lenders to work together to beat fraud on both mainstream and contractor mortgages.
It’s now cheaper for first-time buyers to purchase a home than it is to rent, according to the latest Buying vs Renting Review from the Halifax. In fact it can be more than £100 a month cheaper, but with the average deposit requirement standing at £27,127, buying is out of the reach of many first timers.
The National Housing Federation recently said that by 2021 only 63.8% of people in the UK will be living in owner occupied properties. In 2001, the figure was 72.5%.
In July, the average monthly costs of purchasing a first time buyer two bedroom flat were £567. Renting a comparable property would cost £677. Despite this, the number of people buying their first property is declining.
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Image: Thin house by angelocesare
