Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what discussions he has had with high street banks on the treatment of mortgage applications by people in receipt of support through the Self-Employment Income Support Scheme.
Ministers and officials regularly meet with lenders to understand their lending policies. However, decisions concerning the pricing and availability of loans, including application requirements, remain commercial decision for lenders which the Government does not seek to intervene in.
For individuals applying for new credit, it remains important that lenders are able to carry out the proper checks to ensure that these individuals are not lent to in an unaffordable way, especially if, for example, a borrower’s income has changed as a result of Covid-19.
The Financial Conduct Authority (FCA) recognises that lenders should have flexibility to decide what evidence of income they can accept from self-employed customers. Due to the wide variety of mortgage products available in the UK, self-employed borrowers may find it useful to contact a broker in order to find a lender that is prepared to lend based on the available evidence of income.