Halifax clarifies proof of income requirements to aid processing
Share
Brokers have welcomed clarification from Halifax on what it will accept as proof of income from borrowers.
Last week the lender sent brokers a list explaining what docu mentation it requires for different types of borrowers.
The move is designed to make it easier for brokers to submit cases and avoid them sending in too much or too little information.
Where a borrower is employed, Halifax will only require their latestpayslip. If they are employed with a bonus and overtime, they will need to provide their last three payslips.
If they are receiving a state pension or child benefit, they will need one bank statement dated in the past month and where the client is self-employed they will need the last three years’ accounts.
The lender previously would only ask for the information on a case by case basis. But it says this could lead to confusion among bro -
kers because of variations in cases.
A spokeswoman for Halifax says: “The new app roach means we’ll be consis tent in the documents we ask for from brokers and will make it easier to do busi ness with us.”
David Hollingworth, mortgage specialist at London & Country, says: “It’s an attempt by Halifax to make things clearer to brokers, which is a positive move. Halifax has a good reputation when it comes to service and this can only help.”
He says there have been instances where there has been a lot of to-ing and froing between lenders and brokers over missing documents because the guidelines are not clear.
Aaron Strutt, head of communications at Trinity Financial Group, says: “You hear about lenders either having too much or too little information so this should make things clearer and lead to quicker processing.”
If you enjoyed this article, sign up here to receive daily email updates from Mortgage Strategy and Follow @mortgagestrat
