FTAdviser.com

Advertising

The ban continues the FSA's crackdown on mortgage fraud, which has so far seen over 50 brokers banned in the last three years.

Hornchurch-based mortgage broker Abdul Karim was found to have applied for a £480,000 mortgage, telling the lender that his annual income was more than £100,000.

However, at the same time, Karim only declared an annual income of £30,000 to HM Revenue and Customs.

The FSA found that as the loan applied for was 16 times his declared income, Karim must have known that the application would not meet any lending criteria.

The regulator added that it therefore seemed highly likely that he knowingly declared a false income of more than £100,000, as the only way to obtain a loan of that scale.

Margaret Cole, FSA enforcement director, said: "Mortgage fraud poses a serious risk to the financial system, so we are continuing to take action against mortgage brokers who abuse their position in this way.

"We have banned over 50 brokers in the last three years, and 2009 will see more prohibitions for those involved in mortgage fraud."

The FSA has also cancelled the permission of Karim’s firm Monopoly@States Limited.