The lender is changing its verification requirement to the latest three months of Universal Credit statements.
Halifax said there were usually fluctuations with this income type, so taking an average from the last three months was a “more sensible approach” and ensured it used a “more representative annual amount”.
Further, Halifax has simplified the process for colleagues who are verifying income to reduce the number of instances where it cannot be successfully verified.
When a client receives Universal Credit income, brokers must obtain the latest three months’ statements, and if this cannot be provided, then the income will not be used.
The average income from the three months’ statements should be worked out, and that average multiplied by 12 to give an annual income figure to be keyed.
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For joint applications, 50% of the figure must be keyed under each borrower.
Universal Credit must have been received for a minimum period of three months. On a joint application, all borrowers must have an earned income for the benefit to be used in affordability assessments.
Halifax will still accept circumstances where one borrower is retired or is unable to work and is in receipt of Personal Independence Payment (PIP) or Adult Disability Payment (Scotland).
