Buy to let scam cons 2,000 - buy to let mortgages

21 July 2009

New figures reveal a record number of fraud cases involving property scams, underlining the importance of a careful approach to buy to let deals.

The latest KPMG Fraud Barometer revealed that more than 160 cases of serious fraud with charges in excess of £100,000 came to court in the first six months of the year - the highest level in 21 years.

In one case, almost 2,000 investors are believed to have been victims of a buy to let scam in the north-east which involved around £80 million of funds but involved properties that were virtually worthless.

Hitesh Patel, partner at KPMG Forensic, explained: "Hard times mean more people driven to fraud by personal pressures and more investors willing to believe in cooked-up investment schemes."

In March, the Times reported the arrest of nine people in connection with a buy to let mortgages scam involving fraud of around £40 million.

The alleged incident is believed to have concerned the purchase of around 500 properties over a two-year period beginning in 2005.

For investors, the cases could make many keen to arrange their own buy to let mortgages and avoid buying into any third-party schemes offered to them when purchasing rental properties.

Why not take a look at our best Buy to Let mortgages and make an enquiry online now.