Mortgages for the self-employed

  • by Carole Jordan
  • 06 Jun, 2016
new procedures for the self employed when applying for a mortgage

If you will you be applying for a mortgage soon don’t get caught out by the new procedures!

We often help our clients to obtain finance, including mortgages.
The procedures required by lenders can be onerous and so it is best to get it right from the start.

New procedures for mortgage applications

Most lenders ask for a form from HMRC to prove your income. They will usually ask for an SA302, which is your tax calculation summary. And they will need the previous three years. Inevitably this information is needed urgently to progress the application.

Until recently it was possible to request these from HMRC and they would be faxed to us for speed. This is no longer deemed safe by The Financial Conduct Authority

For security reasons HMRC will only send SA302s by post.

Because of this change the Council of Mortgage Lenders have stated that other documents may now be accepted, which we are able to provide to our clients avoiding the need to contact HMRC and wait for delivery of the vital SA302.

Instead of an SA302 most lenders should now accept:

  • A tax year overview confirming the amount of tax due; along with tax paid and the tax calculation, for the correct tax year.

  • A breakdown of income as per the tax calculation for the correct tax year.

This type of agent produced evidence is readily available to us from our internal systems and through our online HMRC portal.

So, if you are looking for a new mortgage remember two things. Confirm that your lender will accept agent produced documents and if they insist on the SA302s from HMRC contact your accountant or HMRC immediately as on average the SA302 will arrive between 7-10 days later.

If you need help with applying for a mortgage, or want more information on the new procedures HMRC have put in place, then contact us now. You can email us at:  info@businessheads.co.uk  or call us on: 01273 882200.

All details above were correct at the time of publishing - for more up to date information please get in touch .

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