The Solicitors Regulatory Authority (SRA), the body that regulates the legal profession in England and Wales, is investigating up to 60 lawyers on suspicion of mortgage fraud.

The crackdown comes after the regulator saw a substantial rise in the number of reports concerning specific solicitors suspected of mortgage fraud.

Last year the SRA received 293 such reports, up from 85 in 2004.

A spokesman said: “The SRA is investigating up to 60 solicitors who may have been involved in mortgage fraud.”

It said the investigations were at various stages but declined to give details of individuals or firms being probed.

If the SRA discovers evidence of wrongdoing it will pass information to the Solicitors Disciplinary Tribunal, a separate body that can revoke practice licences, as well as the police.

News of the SRA investigations comes as the Association of Chief Police Officers (ACPO) estimated that UK financial institutions lost around £700 million to organised mortgage fraudsters in 2007.

The ACPO said the frauds were made possible by criminal activity or negligence among property professionals, including solicitors.

Separately, Britannia Building Society said today that it was forming a new team to investigate the role of solicitors and surveyors in mortgage deals that have resulted in the lender losing money.

The 17-strong team of analysts and lawyers will be lead by Alxia Antoniou, Britannia’s group head of loss recovery.

Ms Antoniou said: “Given the current state of the market and the potential fall-out from the credit crisis, we have decided to set up a loss recovery unit to investigate surveyors and law firms and, where appropriate, seek redress for fraudulent and negligent activities on property transactions we have lent on.”

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