Land Registry forced to remove online deeds

Concerns were raised back in August that the information contained in the system, such as mortgage deeds, could be accessed by anyone for just a few pounds and used by fraudsters to obtain remortgages without the home owners’ consent.

After conducting an internal review of the system, the Land Registry has removed online access to documents and the public must now apply in writing to acquire information.

Mike Westcott-Rudd, head of corporate legal services at the Land Registry, said: “People can be confident that their property ownership is safeguarded by the state because if someone is a victim of fraud, we have a comprehensive compensation scheme in place to put things right.

“However, fraud is a very serious issue and Land Registry gives it the highest priority. It is important to strike a balance between on the one hand making the system accessible, and simplifying the process of conveyancing, and on the other hand ensuring that appropriate safeguards are written into the system.”

However, Westcott-Rudd insisted that fraud within the system was very rare, with only £12 million in compensation paid out in the last two financial years out of £870 million in fees collected.

Paul Chapman, head of sales at Halifax, also insisted that lenders’ protocol made it very difficult to commit mortgage fraud.

He said: “As you would expect there are a number of checks in place to prevent fraudulent mortgage applications. While some of these checks are front of house, such as evidence of salary and credit commitments, many more checks take place behind the scenes.”

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