The Hidden Truth About CIFAS Markers
Many people assume CIFAS markers only affect fraudsters. The reality is that thousands of innocent homebuyers end up with fraud markers on their credit files—often because their mortgage adviser submitted inaccurate or inflated information without their knowledge.
What is a CIFAS Marker?
CIFAS (Credit Industry Fraud Avoidance System) is the UK's fraud prevention service. When a lender suspects fraud in connection with an application or account, they can place a marker on your credit file. This marker alerts other financial institutions that there may be a fraud risk associated with your identity.
Types of CIFAS Markers
- First Party Fraud - You allegedly committed fraud
- Victim of Impersonation - Your identity was stolen
- Facility Takeover - Account was compromised
Impact on Your Life
- Mortgage applications declined
- Bank accounts closed or refused
- Credit cards and loans rejected
- Employment checks may fail
CIFAS markers remain on your credit file for 6 years. During this time, obtaining any form of credit becomes extremely difficult.
How Clients End Up with CIFAS Markers
When a mortgage application is declined due to suspected fraud, the lender typically places a CIFAS marker on the applicant's credit file—not the adviser's. This means innocent clients often bear the consequences of their adviser's misconduct.
The Typical Sequence of Events
- 1Client provides accurate information to their mortgage adviser
- 2Adviser inflates income, misrepresents employment, or falsifies documents to secure approval
- 3Lender's underwriters detect discrepancies during verification
- 4Application is declined and flagged as fraudulent
- 5CIFAS marker is placed on the client's credit file—not the adviser's
When It's the Mortgage Adviser's Fault
Mortgage advisers are regulated by the Financial Conduct Authority (FCA) and have a legal duty to submit accurate information on behalf of their clients. Unfortunately, some advisers prioritise commissions over compliance, leading to devastating consequences for their clients.
Income Inflation
The adviser increases your stated income to meet affordability requirements. When the lender requests payslips or P60s that don't match, the application is flagged as fraudulent.
Employment Misrepresentation
Stating you're employed when you're self-employed, or misrepresenting your job title to suggest higher earnings. Employer verification calls expose these discrepancies.
Document Falsification
Some unscrupulous advisers alter bank statements, payslips, or tax documents. Modern verification systems can detect these alterations, resulting in fraud flags.
Deposit Source Lies
Misrepresenting the source of your deposit—claiming savings when it's borrowed, or hiding gifted deposits that should be declared.
Why Would an Adviser Do This?
Mortgage advisers typically earn commission only when a mortgage completes. This creates pressure to "make applications work" by any means necessary. Unethical advisers may inflate figures believing the client won't find out—until the CIFAS marker appears.
Common Scenarios We See
Case 1: The Self-Employed Contractor
A contractor earning £45,000 per year approached a broker for a mortgage. The adviser submitted the application showing income of £65,000 to meet the required borrowing amount. When the lender requested SA302s, the discrepancy was flagged as fraud.
Result: Client received CIFAS marker. Lost their dream home. Adviser faced no immediate consequences.
Case 2: The First-Time Buyer
A young couple saved £15,000 for a deposit. Their adviser added £10,000 as a "gift from parents" without telling them, to improve LTV ratio. The lender requested a gifted deposit letter which the parents couldn't provide.
Result: Both applicants received CIFAS markers. Their first mortgage application destroyed their credit for 6 years.
Case 3: The Remortgager
A homeowner wanted to remortgage for home improvements. The adviser submitted the application showing the applicant as "Director" rather than "Employee" to use a more favourable income calculation. Company House records revealed the truth.
Result: Remortgage declined with CIFAS marker. Existing mortgage provider informed. Relationship with bank damaged.
Protecting Yourself from Adviser Misconduct
Review Every Document
Ask for copies of everything submitted in your name. Check figures match your actual circumstances.
Question Optimistic Assessments
If an adviser says you can borrow more than expected, ask exactly how they calculated it.
Check FCA Registration
Verify your adviser is FCA-registered at register.fca.org.uk. Unregistered advisers have no accountability.
Keep Everything in Writing
Email confirmations of what you told your adviser. This creates an evidence trail if problems arise.
Removing a CIFAS Marker
If you've received a CIFAS marker due to adviser misconduct, you have options. The process can be challenging, but removal is possible with the right evidence.
Steps to Challenge a CIFAS Marker
- 1Subject Access Request (SAR)
Request all data the lender holds on you, including the reason for the CIFAS marker and the application submitted in your name.
- 2Gather Evidence
Compare what was submitted versus your actual documents. Identify discrepancies that prove adviser misconduct.
- 3Complain to the Lender
Formally request removal of the marker, presenting your evidence that you were not complicit in any fraud.
- 4Report to the FCA
File a complaint about the adviser's conduct. This creates an official record and may trigger investigation.
- 5Financial Ombudsman Service
If the lender refuses to remove the marker, escalate to the FOS. They can order removal and award compensation.
Getting a Mortgage with a CIFAS Marker
While challenging, it is possible to obtain a mortgage with a CIFAS marker on your file. Specialist lenders exist who will consider applications on a case-by-case basis.
What Specialist Lenders Consider
- The reason for the CIFAS marker and evidence of circumstances
- Time elapsed since the marker was placed
- Your overall credit history and current financial stability
- Size of deposit (larger deposits reduce lender risk)
- Evidence that you were a victim rather than perpetrator
Working with an experienced broker who understands CIFAS cases is essential. Standard high street lenders will automatically decline applications with fraud markers, so specialist knowledge is required to identify suitable options.
Access to Specialist Legal Support
We work closely with specialist solicitors who have extensive experience in CIFAS removal cases, FCA complaints, and claims against negligent mortgage advisers. If your CIFAS marker was caused by adviser misconduct, you may be entitled to:
- Full removal of the CIFAS marker from your credit file
- Compensation for financial losses and distress caused
- FCA enforcement action against the responsible adviser
- Professional negligence claims where appropriate
Need Help with a CIFAS Marker?
If you've received a CIFAS marker following a mortgage application, we can help. Our team has experience helping clients in difficult situations find mortgage solutions—and we never cut corners. We also work with specialist solicitors who handle CIFAS removal cases and FCA complaints against negligent advisers.
Content reviewed: 13 January 2026