DTI acts to protect mortgage holders

24 February 2004
The Department of Trade and Industry (DTI) has wound up two London property companies for taking advantage of homeowners who were crippled with financial difficulties.

The High Court heard that the London Mortgage Exchange UK (LME) offered clients unsuitable mortgage deals to financially insecure clients, some of whom were already facing threats from lenders to repossess their homes.

Among the other charges, the company filed its accounts five months late and failed to keep proper accounting records, falsely claimed to be a member of the Council of Mortgage Lenders, and failed to adhere to the Mortgage Code while claiming to do so.

Meanwhile, the London Property Exchange (LPE), was set up by the LME to acquire properties of the latter's clients who were forced to sell due to their financial difficulties.

The second company, whose accounts were mixed up with those of LME, filed dormant accounts when it was active.