High riskBank & Payment Scams

Mortgage Broker Scam

In this scam, a fake mortgage broker or lender promises guaranteed approval or unusually low rates regardless of your credit, then charges upfront 'arrangement', 'insurance', or 'lock-in' fees for a loan that never materialises.

Quick verdict

Risk level
High risk
Scam type
Advance-fee (fake lending)
Main red flag
A broker guarantees mortgage approval and asks for upfront fees before any loan.
What to do first
Verify the broker or lender is authorised with your financial regulator before paying anything.

What this scam usually looks like

In this scam, a fake mortgage broker or lender promises guaranteed approval or unusually low rates regardless of your credit, then charges upfront 'arrangement', 'insurance', or 'lock-in' fees for a loan that never materialises.

Example message pattern

Example pattern — not a real report
Example pattern: 'Approved regardless of credit! Secure your low rate by paying a £500 arrangement fee upfront, fully refundable once your mortgage completes.'

This is a fictional, anonymised example used to illustrate the pattern. It is not a verified real message, and any names are used only to show how the scam typically reads.

Red flags to watch for

  • Guaranteed approval regardless of your credit
  • Upfront 'arrangement', 'insurance', or 'lock-in' fees
  • An unregistered broker or lender
  • Pressure to pay quickly to secure a rate
  • Vague paperwork and no proper checks

What to do

  • Verify the broker or lender on your financial regulator's register
  • Be wary of guaranteed approval and upfront fees
  • Get advice from a reputable, authorised adviser
  • Report unregistered firms to the regulator

If you already clicked or replied

  • If you paid a fee, contact your bank or payment provider to dispute it
  • If you shared documents, monitor for identity misuse
  • Keep all paperwork and messages as evidence
  • Report the firm to your regulator and fraud authority

What not to do

  • Do not pay upfront fees for guaranteed mortgage approval
  • Do not use brokers you cannot verify as authorised
  • Do not share documents with unverified firms

Similar scams

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Advance Fee Loan Scam

A lender guarantees approval for a loan regardless of your credit, then asks for an upfront 'insurance', 'processing', or 'first payment' fee before releasing the money. Once the fee is paid, the promised funds never arrive.
High risk Bank & Payment

Real Estate Wire Fraud Scam

During a property purchase, criminals who have gained access to a hacked estate agent, solicitor or title company email account send fake or 'updated' wiring instructions. The aim is to divert your deposit or closing funds into an account they control. Because the email appears to come from a trusted party at exactly the right moment in the transaction, these messages can be very convincing. Always verify any payment details by phone using a number you already know.
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Loan Offer Text Scam

This scam sends an unsolicited text offering a pre-approved loan or payday advance with 'guaranteed approval', then either harvests your bank and ID details on a fake lender page or demands an upfront 'release' or 'insurance' fee for a loan that never arrives.

Frequently asked questions

Do legitimate brokers charge upfront fees?
Many fees are paid on completion or are clearly disclosed and regulated. Guaranteed approval with refundable upfront fees from an unverified firm is a scam sign.
Can a mortgage be guaranteed regardless of credit?
No legitimate lender guarantees approval irrespective of your circumstances. Such promises are a hallmark of advance-fee fraud.
How do I verify a broker or lender?
Check your national financial regulator's register, and use reputable, authorised advisers rather than unsolicited offers.
I paid an arrangement fee. What now?
Dispute the payment with your bank or payment provider, monitor for identity misuse if you shared documents, and report the firm.

Last reviewed: June 2026

Disclaimer: This page provides educational information only to help you recognise common scam patterns. It is not legal, financial, cybersecurity, or law enforcement advice, and it does not confirm whether any specific message, company, or person is genuine or fraudulent. When in doubt, contact the official organisation directly and report concerns to your local authorities.