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.