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Santander says income verification rules will hit market share

Santander UK chief executive Ana Patricia Botin says the FSA’s proposals on income verification would affect the bank’s ability to be a “challenger” to the biggest UK banks.

The FSA, in the MMR, is proposing lenders ensure customers can afford their mortgage by checking their income and expenditure.

Giving evidence to the Treasury select committee today as part of its inquiry into competition and choice in banking sector, Botin said it is important for intermediaries to continue to check income on behalf of lenders.

She said: “What is important is that we are allowed to go, as we do now, through independent advisers for verification of income, this is clearly an advantage.”

She added: “If we had to do that ourselves, that would hamper the approvals and therefore the market.”

Botin also said the income verification proposals would hinder competition.

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Comments

There are 3 comments at the moment, we would love to hear your opinion too.

  1. This doesn’t take rocket science for the FSA to achieve their aim and not push up admin costs and therefore price.

    Most would agree that income needs to be verified to clean up a system that has been abused by unscrupulous individuals. This does not require every case to be verified though.

    Just introduce a mandatory sample size where evidence of income is requested from the intermediary and report any cases where this evidence is not forthcoming. This would be sufficient deterrent for the bad apples out there.

  2. What a load of crap. Lenders like Abbey want to pass on potential liabilities to the brokers. When the XXXX hits the fan they want someone to sue.

    Self Cert was a disaster for Lenders because the courts decided that Lenders had to take repsonsibility for any potential fraud because it was they who left the door open for it.

  3. the ultimate responsibility for verification of income & expenditure should lie with the lender and not the advisor/broker; an advisor should pass the documents to the lender and it is up to the lender whether it wants to check randomnly or every case

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