According to today’s Budget, the service would provide lenders with greater certainty about the consumers they lend to.
As part of its Mortgage Market Review, the FSA has proposed placing full responsibility for affordability on lenders. It is also proposing making mortgage brokers personally accountable to the FSA and a ban on self-certification loans.
MAC Consulting chief executive Mark Chilton says: “The idea of HMRC being used for income verification sounds worthy, but is totally impractical.
“The database on tax returns is a minimum of nine months out of date. A recently redundant loan applicant could get a positive verification and applying for the income reference will just take too long.”