Halifax has increased the amount of Disability Living Allowance (DLA) and Personal Independence Payment (PIP) income it will use in its mortgage affordability assessments from 60 per cent to 100 per cent.
It advised that brokers should continue to key the income under ‘other income’, and where it is entered the bank said advisers should ask borrowers how much of the income is used for related costs.
Such costs should then be entered as a credit commitment in the application under the category ‘other’.
If there are no costs, then no credit commitment needs to be entered.
Changes to how DLA and PIP are calculated apply to applications started from 17 January and a decision in principle (DIP) keyed in on that date will be subject to the new requirements.
Applications before this date, including those still at the DIP stage, will remain on the previous rules.
Shekina is the deputy editor at Mortgage Solutions and commercial editor at Mortgage Solutions and Specialist Lending Solutions. She has nearly eight years of experience in the B2B publishing market, having previously covered the hospitality, retail, pet, accounting and jewellery sectors.
Shekina has worked for Mortgage Solutions and Specialist Lending Solutions for almost five years. Here, she covers the market’s breaking news stories, engages with professionals in the sector, and oversees any commercially agreed content in partnership with mortgage-related companies.
This includes presenting webinars and hosting roundtable discussions on developing themes in the mortgage sector.
She is an NCTJ-trained journalist and was nominated for the Headline Money Awards Mortgage Journalist of the Year in 2021.
In her spare time, Shekina likes to read, travel, listen to music and socialise with friends.
She currently reports on current events in the mortgage market and liaises with financial clients to produce sponsored content.
Follow her on Twitter at @ShekinaMS
