The saga continues - self employed mortgage

edited 30 November -1 at 1:00AM in Mortgages & Endowments
6 replies 803 views
robynlouiserobynlouise Forumite
43 Posts
edited 30 November -1 at 1:00AM in Mortgages & Endowments
I was posting on the house buying board as I didn't realise there was a mortgage board.

I applied for a mortgage on my own due to my husband being self employed, having quite a bit of short term debt and paying himself a very low salary (under 10k). They wanted a high deposit so we re-applied together and were able to borrow more, with a lower deposit. Great news. Had an offer accepted on a house, have given them incomings and outgoings, at no point have they asked for my husbands personal earnings - just the net profit of the business (which is LTD/VAT registered) for the last 3 years.

Now being asked to submit SA302s, done some research and this seems to be proof of income tax paid, which is none as he's under the threshold. I've got a really bad feeling that another giant blocker is going to be put in our way.

Replies

  • tiztiz Forumite
    107 Posts
    You can save/print them out in the HMRC online self assessment area - it's basically the page you get after filling in a tax return that shows your total income and what tax/national insurance is due. It should have all his income on, which is presumably what they need, even if the end calculation is no tax is due.
  • Yeah - I guess I'm just annoyed they've not asked for it until now. I had stupidly assumed that the net profit of the business was all they needed. Hopefully if it does have an impact it will be on the borrowing amount (they originally said 227k, we only need 130) and not on the deposit
  • amnblogamnblog Forumite
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    You are going off in the wrong direction here Robyn.

    The Lender will want both the SA302, and the Tax Year overviews.

    You can get them online only if you submit a self assessment return online.

    They will want the 20152016 figures which should have go in today latest.

    If you have not submitted self assessment returns (as no personal tax to pay), then you have a further complication in that you cannot get an SA302.
    I am a Mortgage Broker

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • trailingspousetrailingspouse Forumite
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    But do you have audited accounts? When OH and I bought our house (we are joint directors of a ltd co, and that's our only income), the mortgage provider needed 2 years' worth of audited accounts - but that was all. That was three years ago, and I guess things might have changed, and perhaps it differs from provider to provider, but the books are available that might help?
  • edited 1 February 2017 at 9:43AM
    csgohan4csgohan4 Forumite
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    edited 1 February 2017 at 9:43AM
    But do you have audited accounts? When OH and I bought our house (we are joint directors of a ltd co, and that's our only income), the mortgage provider needed 2 years' worth of audited accounts - but that was all. That was three years ago, and I guess things might have changed, and perhaps it differs from provider to provider, but the books are available that might help?



    The Lender here wants SA302 and therefore anything less will result in decline. As you say some lenders are different, but most will want SA302.


    Unfortunately for the OP, the husband declared low income to offset their taxes and as a result doesn't seem to have filed Self assessment.


    I thought being Self employed your supposed to file self assessment including company directors? irrespective of hitting the threshold or not.


    I'm afraid getting Sa302 for the last 2 years is going to take some time.


    Seems like your trying to go through it alone and finding constant obstacles in the way, using a broker would have helped potentially in this case and matched you to a lender where there could be minimal work needed. Especially if one of you are self employed.
    "It is prudent when shopping for something important, not to limit yourself to Pound land/Estate Agents"

    G_M/ PIxie/ Bowelhead99 RIP
  • His accountants told him he didn't need to do the sa302 as he was under the threshold.

    Thanks for your advice, we are pursuing through a broker who has advised us nowadays 99% of lenders require the sa302 so I'm hoping I'll be able to find someone to lend to me on my own:
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