Accounts for the self-employed and mortgages

animalmagic84

Hi,

I was wondering if someone could help me on how they think that banks would view the following when looking to apply for a mortgage. I am a Chartered Tax Adviser and Chartered Accountant and employed by a company. Therefore, if I apply for a mortgage, the bank will simply ask to see my latest payslips.

My boyfriend, however, is self-employed and therefore needs to show 3 years of past income. He currently has his tax returns prepared and submitted by a local accountant who also prepare his family’s business’ accounts. Now clearly, from a monetary aspect, this is rather daft, as I am more than capable of preparing and submitting his tax return for him (which clearly he would approve) as I am qualified. However, I am unsure how this would be viewed when we come to apply for a mortgage (we already have one at the moment which will be paid off in the next couple of years but we may remortgage in the future in order to buy to let).

Do people think that the mortgage lenders would accept accounts prepared by me as I am qualified? Or would we just need to provide SA302’s from HMRC? If you provide SA302’s from HMRC rather than accounts, does this affect your ability to obtain a mortgage?

Thanks

kingstreet

Two years' SA302s with the net profit averaged over the two years is the current way most lenders evidence and calculate income for the self-employed.

Keep the letter sending them to him as some lenders request that too.

amnblog

I know of one mainstream Lender who would also ask for Accounts and Accounts signed off by the co applicant may need a bit of massaging, but generally the SA302s will do the job.