HOMEOWNERS have been issued an urgent warning over “too good to be true” mortgage rate offers.
It comes with some rates over 6% following the Bank of England’s (BoE) recent base rate hike.
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The recent hikes have seen scammers looking to capitalise by sending out fake emails promising incredibly low mortgage rates.
Action Fraud, the national fraud and cyber crime reporting centre, said it had received over 500 reports in the last two weeks relating to phishing emails claiming to be from lenders.
Some of the emails have promised mortgage offers as low as 2.39%.
But these types of scam emails can lead you to malicious websites designed to steal your personal and financial information, and potentially leave you out of pocket.
Martyn James, consumer expert, said: “Fraudsters are incredibly reactive to events like this and quickly repack old scams designed to get us to click on links or share our details.
“But remember, if a deal seems too good to be true – it is.
“Don’t click on any unsolicited link – even if it looks like it’s from a lender or a trusted source.”
It comes after mortgage rates spiked following the BoE’s most recent base rate hike.
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The central bank upped its rate from 4.5% to 5% last week in a bid to slow soaring inflation, which stood at 8.7% in May.
While the measure is designed to make the cost of everyday essentials cheaper, a higher base rate is passed on to mortgage owners.
And according to figures from Moneyfactscompare.co.uk last week, the average two-year fixed residential mortgage rate was 6.19%.
Meanwhile, the average five-year fixed residential mortgage rate was 5.82% after the BoE’s rise.
The rises mean homeowners on tracker or standard variable rate mortgages are likely to see their monthly repayments rise soon.
Meanwhile, anyone coming to the end of a fixed deal will find their payments have shot up when it comes to remortgaging.
How to spot a phishing email and report it
Phishing emails involve scammers tricking consumers into revealing personal details about themselves, such as a bank account number.
It can then lead to the fraudsters stealing money out of the account.
It can also see you ending up with malicious software on your computer.
Luckily, there are a number of red flags you can keep an eye out for that will tell you an email is fake and dangerous.
They tend to use urgent or threatening language to rush you into clicking through to a website.
For example, an email might tell you an account will be closed down or you’ll be threatened with legal action if you don’t take action.
They often request sensitive information too, but if you’re being asked for it over email or text, it shouldn’t be trusted.
Meanwhile, if an email comes with a suspicious attachment, or there are a number of grammatical errors or typos in the body text, steer clear.
If you’ve received an email and you think it’s suspicious, you should forward it to [email protected].
The National Cyber Security Centre (NCSC) will then investigate it.
If you receive a suspicious text message, you can forward it to 7726 for free.
Meanwhile, if you spot a dodgy online advert, you can report it to the Advertising Standards Authority.
What to do if you open a phishing email
If you do fall prey to a phishing email, there are some steps you can take.
Martyn said the first thing to do is run anti-virus software on your computer, in case the link you’ve clicked on contains a “trojan horse” virus.
Then you should change your passwords, starting with your bank and credit card accounts.
After this, if you think the fraudster has gained access to your bank or other financial details, tell the company or bank those details relate to.
Martyn added: “Keep an eye on your accounts over the coming weeks too. Most fraud is low tech.
“The fraudsters change your log in details and address which is an obvious sign of fraud.”
If you’ve been left out of pocket by a scammer, you might be in line for a refund, Martyn said.
If they don’t refund you, you can always go to the Financial Ombudsman Service.
It is an independent body that settles disputes between consumers and financial businesses and is free to use.
Do you have a money problem that needs sorting? Get in touch by emailing [email protected].
You can also join our new Sun Money Facebook group to share stories and tips and engage with the consumer team and other group members.
