Five questioned in North East Property Buyers fraud probe

Jun 13 2009 by Sophie Doughty, The Journal

Police are still advising concerned tenants to contact a solicitor.

People affected by the alleged scam have today welcomed the news that arrests have been made.

Mother-of-three Claire Young, 33, had been renting a home in Hadston, Northumberland, from North East Property Buyers, until she and her husband Peter became suspicious about their elusive landlords.

The couple began renting the new build in the hope that they would be able to buy in one day and have a home for life.

But when they were visited by a representative from a mortgage company and received a letter addressed to the occupier stating that the mortgage was in arrears and the mortgagee must contact them as soon as possible, they began to panic and look for a new home.

Mrs Young said: “People work hard to have a nice house. We have taken up another private let. The house we have moved into is secure and we have peace of mind that we don’t have to worry about letters coming though our door.”

But Ray and Pauline Glendenning, of North Shields have now lost the home they had lived in for 25 years. The Glendennings sold the house on Linskill Terrace to the company in 2005 and were promised a secure home for at least a decade and a lump sum after 10 years.

Mr Glendenning, 64, who is now having to rent a house, said: I lost £35,000 and lost the house I’ve been living in for 25 years. I’ll be watching closely to see what happens. I want to try and get my money back.”

Detectives launched a major fraud probe in March after raiding homes and offices connected to North East Property Buyers and Newcastle Home Loans.