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Mortgage Application - Self Employed - SA302
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Posts: 5 Forumite
Hi,
I was wondering if anyone could help...
Looking to buy a house and went to the Halifax to get an Agreement in Principle.
It's a little complex as I'm both employed and self-employed but my main income is through employment and I earn £1-£5k per year through self employment.
Where the problem lies is that I don't have an SA302 for 2017-2018 as I earned less than £1,000 and didn't have to submit a tax return. I explained this to the advisor and she said this wasn't a problem as she can use my employment history instead.
However, now that the mortgage application has been submitted, Halifax are asking for the SA302 for that year.
I'm aware that most mortgage lenders need 2 years worth of books if you're self employed but I don't understand why this has became an issue now when it was no problem before. Surely this is only the case if your work is predominantly self employed.
Would appreciate any help/advice.
Thanks!
I was wondering if anyone could help...
Looking to buy a house and went to the Halifax to get an Agreement in Principle.
It's a little complex as I'm both employed and self-employed but my main income is through employment and I earn £1-£5k per year through self employment.
Where the problem lies is that I don't have an SA302 for 2017-2018 as I earned less than £1,000 and didn't have to submit a tax return. I explained this to the advisor and she said this wasn't a problem as she can use my employment history instead.
However, now that the mortgage application has been submitted, Halifax are asking for the SA302 for that year.
I'm aware that most mortgage lenders need 2 years worth of books if you're self employed but I don't understand why this has became an issue now when it was no problem before. Surely this is only the case if your work is predominantly self employed.
Would appreciate any help/advice.
Thanks!
0
Comments
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Do you need the self employed income to pass affordability?I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, 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.0
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If you don't have a tax return for that year you will struggle. What is the affordability like without it?I am a Mortgage Adviser
You should note that this site doesn't check my status as a Mortgage Adviser, 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.0 -
I'm not entirely sure but would presume not - they didn't take into account my self employed income when I got the agreement in principle and I have stayed well within the figure they agreed to lend me. And as I said it is only a couple of grand per year so can't imagine it would make a huge difference.0
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No - I'm sure it would be fine without it as I don't think the advisor took into consideration any figures for my self employment when I applied for an agreement in principle. I pointed out myself that I didn't have an SA302 for this tax year and was told that it wouldn't be a problem.0
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Just ask them to ignore that income then and all will be fine assuming it still passes affordability.I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, 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.0
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At the moment they're just saying they cannot process the application any further without the SA302!0
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Speak to the advisor. Ask them to ignore that income.
If it does not pass affordability without it then you coud maybe look at extending the term, failing that your broker needs to find a new lender.I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, 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.0 -
Thanks for the advice, really appreciate it - I will try that. They seem to be being a little stubborn at the moment but fingers crossed.0
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