Lender calls for HMRC data sharing
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Lenders should have access to tax returns and data from HM Revenue & Customs in order to verify income, according to a senior risk director at Santander.
Speaking at the Marketforce and Institute of Economic Affairs Future of Consumer Finance conference in London today Alan Brener, director of regulatory risk strategy at Santander, mooted the idea of sharing data between HMRC and lenders in order to support applicants’ income details.
Brener says that this would be beneficial for both lenders and prospective borrowers, but would have to be conditional on applicants granting their consent to HMRC passing data to lenders when they apply for a mortgage.
He says: “There is a possibility that affordability checks could be made easier both for the consumer and for the industry by having access, with the applicant’s agreement, to verify some of their income through their tax returns.
“It would be great if lenders could verify what customers are putting down as their income against say the HMRC figures.”
As part of the Financial Services Authority’s Mortgage Market Review the regulator wants to see income verification on all mortgages regardless of the type of borrower, the type of lending, or whether the applicant is self-employed.
Work is already being carried out by the Department for Business Innovation and Skills to ensure greater data sharing is carried out within the unsecured lending sector.
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Readers' comments (3)
Paul Silcox | 23 Mar 2010 5:17 pm
Damn right! HMRC may even be able to recoup some money from tax evaders.
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Mandeep | 23 Mar 2010 8:24 pm
Data from DWP, the Home Office and Inland Revenue should be made available to all lenders. This would certainly ensure that the moody brokers amongst us would fly the nest.
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Anonymous | 24 Mar 2010 10:04 am
In principle good idea but doesnt help the self employed who dont declare all their income. This will verify sound employment out but any good underwriting will do this....we'll be in the next recession by the time HRMC send the info back...
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