I was interested to read your recent article headlined ’AfI gets tough on income proof for fast-track’ (Mortgage Strategy Online).
Abbey for Intermediaries’ decision to crack down on income checks raises important questions about lenders and proof of income.
Of course, this is one of the main features of the Mortgage Market Review, along with a proposal to make affordability tests mandatory for all mortgages. So lenders are ultimately responsible for assessing consumers’ ability to repay mortgages.
The FSA makes it clear that brokers have a responsibility to check affordability and we often certify to lenders that this has been done.
But if we brokers have to collect income verification information why should we not send this to lenders? It wouldn’t hold up the process as brokers should not be sending cases to lenders until they have seen the evidence anyway.
I would be interested to know if lenders are planning to continue fast-track post-MMR. Abbey is simply asking brokers to do what they should be doing already.
GROUP MORTGAGE SERVICES DIRECTOR