02 October 2017
With effect from today, Monday 2 October 2017, the following policy changes to self employed income will apply:
New applications for self-employed customers:
- The number of years income figures that their system will request will be reduced from three years to two years
- Income used for affordability purposes will be based on the lower of the latest year keyed or the average of the two years
- If the business has been trading for at least 33 months but only the latest year’s income has been keyed, the system will prompt you to also key income for the previous year as this should be available. The message will display: “Please key the full details for the previous years’ accounts for client's 1st job (or 2nd, 3rd etc. as applicable)”. If a zero figure is keyed for the previous year, to clear this message, then this will impact affordability as the average of the two years will be used
- They will still consider customers who have been self-employed for less than two years, but for at least one full year. Just the one year’s income should be keyed and that figure will be used in affordability. These applications will continue to be referred to their underwriting team for review.
Any Mortgage, Further Advances and Full Affordability Product Transfers applications started before Monday 2 October 2017, will continue to require three years income to be keyed and verified.
The Halifax Intermediary website will be updated today to reflect these changes.