No SA302, no mortgage?

gonz82

We are currently applying for a mortgage, with the following situation:

Myself and my partner are co-owners (51/49%) of our limited company, that has been trading for 3.5 years. I am a director, my partner is not.

We both take ~11k PAYE, with dividends on top.

Our income is sufficient for the mortgage we want, but the broker says we both need to produce SA302 forms for the lenders. This is not a problem for me, as I always submit tax returns (because I am a company director). My partner, however, does not, as she is not a director and her income is below the higher-rate - therefore she has had no obligation so submit.

We can produce P60s showing PAYE, dividend vouchers/accountant reference and full company accounts for three years (profitable in each). Between these documents, there is (in my mind) more than sufficient evidence to prove my partner's income.

The broker (a household name) thinks that this will not be sufficient, but is (apparently) looking for lenders that might accept without (although he has been doing this for 3 days now, without result).

It doesn't look like it will be possible for us to obtain the SA302s for my partner, so is this the end of the road? My income on its own is not quite enough for the mortgage, but our joint income is more than enough. The mortgage we are looking for is only a 25% LTV (i.e., a 75% deposit).

Should I be looking for a new broker?

thanks

SavingSteve

You mention Dividends on top for both of you, that Dividend should be on a tax return.

gonz82

The dividend is on my tax return, yes, but there is no obligation to submit a tax return where PAYE + dividend is less than the higher-rate threshold, which is why my partner has not submitted any over the last three years. I don't have a problem producing the SA302 for myself, but she cannot.

With the change of dividend taxation that has come in this year, I imagine we will both have to submit from now on - but that doesn't help us with this application.

kingstreet

They can use a lender which works from accounts and/or an accountant's certificate.

Some lenders still don't like SA302s/SA Online tax calc sheets.

gonz82

Thanks - can you recommend any please? I'm not sure this broker has his heart in the job, maybe I would be better off going to some lenders directly? My current broker just sees this as a major stumbling block and has not offered any solutions.

kingstreet

No, sorry.

We're not permitted to provide specific lender guidance on here. I can't imagine any broker can't think of at least three lenders in the category I suggested giving it two minutes thought.

A broker is still the correct route. Perhaps just a different one...?

Glover1862

gonz82 wrote: »

Thanks - can you recommend any please? I'm not sure this broker has his heart in the job, maybe I would be better off going to some lenders directly? My current broker just sees this as a major stumbling block and has not offered any solutions.

Try Virgin.

ACG

Not being obliged to submit self assessments does not mean you can not do them. Speak to the company accountant, they can file them and have them ready for you within the week.

But there are lenders who will work of accounts or an accountants certificate. Its just a case of finding the right lender for your circumstances.

gonz82

Thanks guys, it sounds like there is some hope at least, and that I need a more proactive mortgage broker. My company accountants are under the impression that we'd get late submission penalties for retroactive submissions, and also wants to charge £180 per year - quite a whack of cash when you add it all up - so obviously if there are mainstream/competitive lenders who are willing put some effort in, and glean exactly the same information from other documents, that would be ideal.

amnblog

An interesting one Gonz.

I have had some who would Accountants say that your Partner needs to submitting self assessment returns anyway, and other Accountants who would say you do not.

The bulk of lenders will want SA302s and Tax Year Overviews.

As stated above, not all Lenders do and it appears that either your current broker is not aware of this - or your Broker has identified that there are elements of the case that preclude lenders who can work without SA302s.

Don't try and sort it out on your own direct to Lender.