Mortgage applications - proving your earnings.

Years ago it was really easy to apply for a mortgage if you were self employed or you owned your own company, the mortgage lender, usually a building society, wrote to your accountant and asked for details of your income.

Over the last few years more and more lenders have relied on the form SA 302 which can be printed off the the HMRC website giving details of your income. Which is all well and good if you have submitted your own tax return. If, however, your accountants have submitted your tax return you'll probably not be able to print off a form SA302 because your accountants will have used their own software to submit the return rather than rely on HMRC's software.

Fortunately there is a way round this. You or your accountant should print out the Tax Year Overview from HMRC's website and then your accountants should print out the Tax Calculation from the their own software. Both statements should then be sent to the prospective lender.

Hopefully everything will then be straightforward as this procedure has been agreed with the Council of Mortgage Lenders and HMRC.

If not I suggest that you refer the lender or mortgage broker to this article from the Institute of Chartered Accountants in England & Wales.
And finally, if the mortgage lender or mortgage broker still refuses to accept this is how it happens nowadays, it may be well worth pointing out to them that if you have to ask HMRC to post you copies of the SA302s HMRC will ask which lender is refusing to accept this solution.

Personally, I wouldn't like to be the person who made HMRC contact the lender's head office!

Days to January 31st