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Halifax streamlines affordability and bans selected incomes

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  • 07/10/2016
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Halifax streamlines affordability and bans selected incomes
Halifax Intermediaries has stopped accepting a selection of allowances and income types to support mortgage applications, alongside a move to simplify its income verification process.

The lender will no longer accept any proportion of; Adoption Allowance, Guardian’s Allowance, Foster Care Allowance, Bursary Income and Stipend Income (generally paid for expenses).

Previously, Halifax would accept 60% of these income sources.

At the same time, the lender plans to simplify the process for brokers of providing client income. Where basic income is enough to support the mortgage application, any other income earned by the applicant will not need to be evidenced.

Currently, Halifax asks for proof for all income earned by the applicant.

In an email to its brokers, Halifax said the decision in principle request for all income to be supported should be ignored, and to wait until the full application update is provided. This will only ask for basic income if the deal meets affordability requirements.

Brokers have also been reminded that for self-employed applications submitted from 5 October, the latest tax calculations and tax year over views must be for the tax year 2015/2016.

Halifax was unavailable to comment on the changes.

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