Applying for a mortgage or renewing a mortgage when you are self-employed can seem a bit daunting, particularly when the mortgage company ask for a batch load of information to complete your application.
Don’t be alarmed by this, as it is all very standard procedure for those who are self-employed or have their own limited companies. This is something we are happy to help with and often our input is crucial to ensure they receive all the information about your earnings.
Mortgage intermediaries will also be a help and can point you in the right direction of what information is required. We work closely with many intermediaries and between us we take a lot of the stress out of the process for our clients.
Mortgage lenders ask for a variety of things depending on the type of mortgage required, the type of business you have and how long you have been in business.
In recent years the common request has been for SA302’s – confirmation reports from HMRC which show the earnings that have been declared on your personal tax returns. We were able to request these and they sometime came via the post or occasionally by fax. These became a big burden for HMRC and a task they quickly didn’t want to have to do. So over the last few months this has changed and the new online facilities with HMRC now allow us to print a self-assessment tax overview for our customers. This overview print can now be used in replacement of the SA302’s.
In addition, it is very common for us to provide signed accounts with our accountant’s certificate on them. Often 2 or 3 years accounts are needed. The mortgage company use these to agree to the tax return information and they often look for consistency in profits and sales. Sudden downturn or even sudden increases can sometime require further explanation.
An accountant’s certificate is often asked for by many lenders. This usually requires us to enter details about your business, and to confirm the trading results that are shown on the accounts along with other details about drawings and percentage of ownership. Again, this is usually required for two to three years.
We are happy to assist with any applications and please feel free to ask us for help, which we hope will speed up the process for you and get you the mortgage approval quicker.