A CARE worker who earned less than £6,000-a-year conned two mortgage companies into lending her more than £100,000.

But Sandra Ashcroft walked free after Manchester Crown Court heard she was advised to lie about her income by mortgage brokers.

Financial experts and advice groups said the case highlights how easy it is for people with a poor credit history or low-paid job to secure massive loans without having to prove their income.

Ashcroft, 59, lied about her salary to secure a loan of £102,000 to buy a house in March 2003. Two years later she increased the loan to £122,000.

She first claimed she was a £35,000-a-year senior midwife at Manchester Royal Infirmary, then on the second application that she earned around £80,000 `in the public services'. In fact, she earned £3,000 to £5,500-a-year as a carer. After obtaining the loans, Ashcroft lied to get benefits to pay the interest charges.

She also claimed she had no previous convictions. But she had a string of convictions for dishonesty, robbery and theft.

Ashcroft, of Old York Street in Hulme, pleaded guilty to obtaining money transfers by deception and received a six-month suspended prison sentence and 40 hours unpaid work. She was convicted of cheating the benefits system at an earlier hearing.

During the case, the mortgage market in Britain was compared with the US `subprime' loan - a high interest loan for people with a poor credit history. Problems with people defaulting on subprime loans has led to a world-wide financial collapse this month.

A spokeswoman for the Citizens Advice Bureau said they had increasing evidence of people being encouraged by brokers to lie about their income on subprime loans in Britain.

She said: "There are now an awful lot of people who are not only being encouraged to lie about their earnings but encouraged to take on home loans where it is clearly impossible to maintain the payments.

"Basic checks like proof of income are not being done and a growing number of people are in real difficulty from taking on such mortgages.

"They are being targeted by a certain sector of the market when they can not get a mainstream mortgage."

A spokesman for the Financial Services Authority said: "Mortgage brokers must not submit or assist in the submission of mortgage applications containing false information.

"We would strongly advise consumers not to submit false applications as they are committing fraud and could lose their home if they are not able to keep up with repayments."

Sentencing Ashcroft Recorder Philip Cattan said: "It is a somewhat unusual case because there is evidence you appear to have been steered towards giving misleading information."

Ashcroft could now lose her home as prosecutors have launched a proceeds of crime case against her.

The court heard that interest charges on her mortgages from Southern Pacific and GMAC were met by the Department for Work and Pensions after she lied that she was unemployed.

Mark Rhind, defending, said Ashcroft had used brokers who were `well known in the area' for arranging loans where incomes were `self-certified'.

He said: `Very few questions are asked and the price is higher fees and higher interest rates."

He said Ashcroft paid £2,500 fees out of her own pocket.

A spokesman for GMAC said: "The company takes its lending responsibilities very seriously and is confident that its procedures are robust."

Southern Pacific said they were unable to comment.

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