HM Revenue & Customs has confirmed it is in advanced talks with the Council of Mortgage Lenders about introducing a scheme that allows lenders to verify income.
Money Marketing understands it could be launched as soon as three months’ time.
The previous Labour Government announced plans to set up a formal scheme in its March Budget. Panellists at a recent Money Marketing round table urged the coalition Government to press ahead with the plans. An HMRC spokesman says the scheme would have benefits for HMRC and lenders.
He says: “Lenders who suspect the income details on a mortgage application are fraudulent will be able to check whether the details provided match information supplied to HMRC, such as tax returns, for example. The scheme will assist lenders with their responsibility to verify mortgage applications, and it will provide HMRC with valuable intelligence about people who may be evading tax.”
A CML spokesman says: “This is not necessarily something we would see as a means of implementing income verification requirements that may emerge from the mortgage market review, it is essentially for fraud detection.”