Brokers and lenders have called on the Government to push ahead with the Labour administration’s plans to allow lenders to use HM Revenue & Customs’ data to verify income.
Panellists at a Money Marketing round table said a robust system would allay many industry concerns about the FSA’s new income verification requirements.
Nationwide head of mortgage strategy and policy Andrew Baddeley-Chappell said: “The Government should implement using HMRC data on how much people earn to verify borrowers’ income. It seems like a joined-up process because there are two opposing forces – people want to keep their earnings low to pay low tax and they want to keep their income high to get a mortgage.
“If the Government wants to maximise its tax revenue and minimise irresponsible lending, this is something that would be self-financing. There would be benefits to customers, the Government and lenders.” PMS executive chairman John Malone said the move could help 10 million people who find it difficult to prove their income.