How serious is this?

System

Bank will obtain employer references so it wouldn't work
They could just buy a small flat and pay it down to work their way up the ladder

ACG

MatthewAinsworth wrote: »

Bank will obtain employer references so it wouldn't work
They could just buy a small flat and pay it down to work their way up the ladder

Very few lenders ask for a reference as standard, its usually only in certain circumstances.

Goldiegirl

The lender will want to verify that the employer exists.


It's quite easy if it's a big, well known employer. and the lender will know exactly what the payslips of big, well known employers look like.


But if they are given generic payslips and the 'employer' is an unknown name, the lender will do a lot of digging, to verify the employer. Such as looking in the phone book / online searches / searching at Companies House / driving by the address of the 'employer' to see if it's a business / writing to your tax office to confirm that you are paid by the 'employer'


So, fake payslips usually fail at the first hurdle.

Thrugelmir

Where a lender has concerns they can use the HMRC Mortgage Verification Scheme. Details of the application are provided to the HMRC via an electronic portal. The information checked against databases of employment and tax information. The HMRC will then inform the lender if everything corresponds.

HMRC can obviously commence their own enquiries.