Sole trader Mortgage net v sa302

BIGDSUMMER

HI all have posted some similar posts but still coming up against problems sorry if this is obvious stuff but its confused me ..

I had asked my accountant to provide me with my last 2 years net profits for mortgage purposes as this is what the mortgage companies are asking me as a sole trader so these are the figures i have been putting into mortgage affordability calculators we now have a mortgage in principle and they have asked for SA302 again i have these however i have noticed that these state
£4050 less than what is stated on my accountants paperwork as net profit and in correspondence with him

I have figured out this decrease from SA302 total income to what i have been told is my net profit is due to a capital allowance which is as i gather the company vehicle .

So have i been putting my net wrong the whole time and my accountant should have given me the figure minus the capital allowance or are my net figures correct and the underwriters understand such variants....

Thank you for your time

csgohan4

unfortunately you can't have your cake and eat it. If you want to claim more on taxable allowances, your net profit will be reduced.


Most lenders use SA302 and if you give your self a small salary and minimal dividends your losing out on the multiplier for mortgage calculations

cns06

From what I read I don't think he is trying to have his cake and eat it - I think he has just not been given the correct figures in the first place. This is why a broker is a must for self employed IMHO because they will ask for everything before the app and then make sure everything adds up before the AIP is applied for. If something does not add up they will make sure the lender gets the correct figures.

I guess the next question is do you "need" the extra £4k to meet your affordability...

BIGDSUMMER

Hi as said kindly with the previous post who had taken the time to read my message there is no case for have your cake and eat it..
I had been on PAYE for 16 years so i pay an accountant to file my returns as i have zero knowledge regarding accountants i had informed the accountant of my mortgage intentions and had absolultly no idea of what appears to be a mine feild of figures miss information and various loose opinions and variable needs of lenders and yes the 4k is the deal breaker on the affordability...

I have spoken to three brokers (whole of market) who all also have various opinions some say certain lenders don't ask for SA302 but are happy with accountants net profit certificates , Others say 100% of all lenders require SA302 forms....

From my research Nationwide seem happy with a qualified accountants proof of income net figures but to be honest i feel like i have little hope going forward with this due to variants of information i have been given ...

amnblog

csgohan4 wrote: »

Most lenders use SA302 and if you give your self a small salary and minimal dividends your losing out on the multiplier for mortgage calculations

Our OP is a sole trader not a Limited Company Owner

amnblog

It sounds like your Accountant has put capital allowances against the net profit of the business to reduce your SA302 self employed income figures and therefore your tax bill. You are suggesting there is a cost for the vehicle but that cost should be discounted for mortgage affordability.


For a sole trader I can only think of one Lender who might work without SA302s and that is not Nationwide.


If your case has been considered by brokers who specialise in self employed mortgages your affordability may just not be there. If not, there may be an approach that your current sources are not familiar with.