Getting a mortgage couldn’t be easier, could it?


It seems from regularly talking to clients going through the mortgage application system, there is a small cog that is slowing the process down, causing unnecessary frustration to borrowers.

Keith Penny, Company Director of multi adviser IFA firm Pennymatters Ltd, said “The carefree approach of some lenders concerning the verification of income was to some extent the catalyst for the painful credit crisis.  As a result, lenders are now more stringently regulated and thus take all reasonable steps to verify precisely any income declared on an application for a mortgage.”  Lenders are heavily regulated and are forced to ensure they receive hard evidence of income by way of a form SA302 and in some cases, tax calculations are required.    An SA302 is a summary of a completed Tax Return and can only be provided by HMRC.

These forms can be difficult to get hold of and can take up to a fortnight to obtain and so cause delays in any mortgage application.

In December 2014, HMRC announced that tax payers would be able to provide proof of their income to potential lenders themselves by printing off tax calculation and tax overview via their online account.  HMRC said that accountants could also print these documents using their agent HMRC web portal.

However, this is not as straightforward as it sounds.  The reason being that HMRC documents are only available to print off if the Tax Return has been submitted to HMRC using HMRC’s online tax return software.  Most agents, including PKB, use third party software and are therefore, unable to print off an SA302 for their clients and are forced to apply to HMRC on the client’s behalf and wait up to 14 days to receive it.

We at PKB would encourage you to have your Self-Assessment Tax Return completed at the earliest convenience.  This would ensure you can apply for a current SA302 straight away.  Not only that, you can avoid the stress of last minute tax bills by knowing your tax position earlier.  Why wait?  Contact our tax department today for advice.

About the Author

Photo of Rebecca Austin - works with SME clients. He particularly enjoys working with owner managed SMEs, helping them achieve their personal and business goals – or as we say at PKB, ‘Aspire, Achieve and Enjoy’.

Andy says, “What’s important to you?  We like working with our clients to find out what they need and advise them the best way forward.”

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