Could Big Brother – in the form of mortgage lenders – be watching social media to see not just what individuals are saying but who their friends are?

A warning on Property Tribes says that UK lenders are using the social web as part of their due diligence.

Vanessa Warwick, who runs the site which is for landlords and property investors, said that lenders particularly use Facebook.

She said they are particularly looking for people who discuss ‘no money down’ deals, and how to structure illegitimate deals. She said that lenders will use whatever means are available to help them with due diligence.

However, in America, lenders are taking things further than that.

When someone applies for a loan, the lender examines the credit ratings of members of the individual’s social network.

If their average credit rating is below a minimum score, the individual’s loan application is connected.

That might not be good news for someone – let’s say an agent or landlord – who uses Facebook as a communication tool with tenants on benefit.

See Property Tribes here