Halifax revamps income verification process
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From tomorrow, Halifax for Intermediaries is making a number of changes to the way it verifies client documentation.
It has made some key changes to the documents brokers are required to submit, which include the following:
- Where the client is employed with basic income only - it will need to see their latest payslip.
- Where the client is employed with bonus/overtime - it will need three payslips dated in the past three months.
- Where the client is receiving state pension or child benefit - it will need one bank statement dated in the past month.
- Where the client receives an annual bonus - it will need to see the payslip where their bonus was paid, or their P60.
- Where the client is self employed - it will need the latest three years’ SA302s.
Any pipeline cases will automatically be handled within its new process. The online application system will also advise brokers of the documentation it requires on submission of any new cases.
A spokeswoman for Halifax, says: “The new approach means that we’ll be consistent in the documents that we ask for. We’ve also introduced some updates to our website. They’re just two of the things we’ll be doing over the coming months to make it easier to do business with us.”
It says in order to improve the accessibility and layout of its lending criteria, it is updating the Halifax Intermediaries website.
It has redesigned it as a direct result of broker feedback to make the content easier to view. It has also added a feedback form on the website, allowing brokers to tell them what it thinks.
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Readers' comments (9)
Dan McGeehan | 17 Aug 2011 12:50 pm
Perhaps they could also consider answering the phone in a timely manner. From personal experience and feedback from other brokers it is generally a nightmare to get through and an initial hold of 5 minutes is not uncommon.
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Anonymous | 17 Aug 2011 1:11 pm
Five Minutes!? Really??
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Anonymous | 17 Aug 2011 1:22 pm
Back to basic common sense where clients have to prove income. Maybe this will inprove the Halifax service !!!
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jeremy | 17 Aug 2011 2:47 pm
I have had no issues with Halifax service for years; As an INDEPENDENT broker I have not used them. Anybody calling themselves independent and using Halifax intermediary channel PLEASE justify the cost to the client.
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Anonymous | 17 Aug 2011 7:01 pm
Jeremy as above are you stupid...? Not every broker uses a lender based on 'cost' what do you do with cases where you need to lend above commercial premises and the best cost lender cant do these.. OR you require the lender to use 100% of overtime or commisision... (I can go on...!!) ? Its good news for all us other brokers who are not order takers so only rely on the best rate... !!
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dave whitwam | 17 Aug 2011 11:57 pm
ING Direct only ask for last 2 yrs SA302s... clearly Halifax are saying they dont want self employed applicants any more... To make it easier to do business with them why dont they stop trying to cross sell to my clients!
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Anonymous | 18 Aug 2011 11:01 am
This level of documentation is no more than that previously required when the mortgage market was alive with non conforming lending products. The mainstream was quick to categorise all such product providers as 'sub-prime'....but has anyone been paying attention since the collapse of the capital markets? It would seem that mainstream due-dilligence has been diluted to a level rendering them.....non-conforming?
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Anonymous | 18 Aug 2011 11:27 am
I presumed all lenders checked income these days whether payslips, references or accountants. Seems to be that the Halifax has taken a while to catch up ith the lending criteria insisted upon by other lenders.
This can only be a positive to stop fraudulent cases proceeding with the halifax group.
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Paul | 20 Aug 2011 10:21 am
So the documents they are asking for are now the same as most others.... wow. Big step forward! To anonymous on 17th at 7.01 pm, Woolwich will use 100% as long as doesnt exceed basic income
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