DETECTIVES investigating what is alleged to be the UK’s biggest mortgage fraud have made a further seven arrests in the region.

Six men and one woman were arrested during raids in Darlington, Newton Aycliffe and Barnard Castle.

Officers are investigating David Oliver Residential, a former estate agents in Darlington, and Dolphin Finance, ACM Mortgage Packages, Sell and Rent Back, and Simply Bridge, all of Newton Aycliffe.

The Northern Echo understands Craig David Purdie and Andrew Oliver Bellwood, partners of David Oliver Residential, were among those arrested.

Two men from Huddersfield were also arrested. All nine suspects were released on police bail while inquiries continue.

Detective Sergeant Terry McCabe, of Durham Police’s economic crime unit, said the arrests, on Friday, followed a 12-month investigation.

They are linked to an inquiry by Northumbria Police’s economic crime unit into more than 2,000 mortgage applications.

Last June, police raided the Gateshead offices of North- East Property Buyers and Newcastle Home Loans.

The firms bought homes from people struggling to pay their mortgages and allowed them to rent them back.

But they allegedly defaulted on repayments, leading to scores of repossession orders in the county courts.

Detectives believe hundreds of people across the country have fallen victim to the alleged scam.

Northumbria Police made five arrests on suspicion of money laundering and conspiracy to defraud last June.

At the time, Detective Chief Inspector Jim McAll, of Northumbria Police, said: “If proven, and if it is on the scale alleged, it will probably be one of the biggest property frauds in the country.”

Those arrested included Mr Purdie’s stepmother and father, Grace and David Purdie, of Darras Hall, Northumberland, each a director of one of the Gateshead companies.

Craig David Purdie is a former appointed representative of Newcastle Home Loans.

Mr Bellwood was arrested on suspicion of money laundering, last March, when £34,000 was found in his home in Newton Aycliffe.

Two solicitors have been arrested as part of the wider investigation.

Det Sgt McCabe said last night: “Officers are keen to speak to anyone who has concerns about their dealings with these companies. They should get in touch with the Durham Police economic crime unit.”

Many householders learned of the problem when eviction notices were served on them by lenders trying to sell their homes to recoup their money.

Last August, a judge at Newcastle County Court agreed all proceedings connected to North-East Property Buyers would be withdrawn.

Instead, about five test cases have been chosen to go to trial and will determine the outcome for all other tenants.

■ The economic crime unit can be contacted on 0345-6060- 365 or financial.investigations @durham.pnn.police.uk