Halifax has announced changes to its requirements for the keying and verification of some incomes, effective today (12 September).

The lender’s standard income verification requirement for employed customers with basic income only will change from the latest payslip to the latest month’s payslip(s) while there will be no change for anyone paid monthly. 

In addition, for customers paid weekly or fortnightly Halifax will require additional payslips.

Other incomes that are verified to payslips will also see the same new requirements applied if paid weekly.

For additional income such as bonus, overtime and commission, Halifax says the income verification requirement will change from the latest three payslips to the latest three months’ payslips’. 

It notes that if a customer started a new job less than three months ago these incomes cannot be used.

There is no change to the lender’s verification requirements if the additional incomes are paid monthly but additional payslips are required if the customer is paid weekly/fortnightly.

If bonus, overtime or commission is paid quarterly, half-yearly or annually Halifax will now require proof of the latest two years’ income.

The bonus, overtime or commission income to be keyed will be the lower of either the total additional income earned in the last year or the average of the income earned in the last two years. 

Halifax says it’s important the two-year average is keyed when this applies as changing the figure when we verify the income could affect the loan amount available.

The lender will also add three new contract type options in the dropdown menu on Halifax Intermediaries online, which include the construction industry scheme (CIS), junior/locum doctor and zero hours contract.

There is no change to the income verification requirements for these incomes but Halifax says the new options will allow it to provide a next steps message to reflect the specific income verification required for each.

For CIS the lender will require the latest three months’ payslips or invoices as well as corresponding bank statements. 

Junior/locum doctors will need to provide the latest three months’ payslips while zero hours contract will need the latest 12 months’ payslips. 

There are no other changes to its income keying or verification processes and no changes to self-employed income verification. 

Halifax says the changes apply to all full applications submitted from 12 September. 

If a decision in principle (DIP) was keyed before 12 September but the full application was submitted on or after 12 September, the new requirements would apply.