Apparenty the Mortgage Verification Scheme started on the 1st September 2011. It is only mentioned in the 2010 budget here where it says:
“Income Verification Scheme
The Income Verification Scheme, through which HMRC has details of potentially fraudulent income declarations of individuals applying for a mortgage referred to it by financial institutions, is to become an ongoing facility. “
This article here states that financial services press releases have been made which clearly state the aim of the Mortgage Verification Scheme to be to combat potential mortgage fraud. Mortgage lenders will now be able to check with HMRC that mortgage applicants’ stated income levels tie in to those reported on tax returns.
Guardian Article about this mortgage verfication scheme – Anyone tempted to inflate their salary – or even submit fake payslips or bank statements – when applying should be aware that, if they are rumbled, they could find themselves being investigated and possibly prosecuted for frau