Self-employed and applying for a mortgage?

Are you self-employed and applying for a mortgage?

If you are self-employed and looking to get a mortgage, you might find it a little bit more challenging than if you were employed. Chances are you will need to work a little harder to prove your income and affordability.

Boosting your chances

There are many things that you can do to improve your mortgage chances, and this is particularly important when you’re self-employed. For example, checking your credit report and ensuring that it is as healthy as possible, along with building up a reasonable deposit, will all work in your favour when it comes to increasing the likelihood of getting a mortgage approved.

Get Ready for the paperwork!

When you’ve done all you can to boost your chances, it’ll be time to get your paperwork ready. Keeping all your finances and paperwork in good order should help when gathering any information you might need to support your application. This will likely include some of the following and more: bank statements, your trading accounts and SA302s.

What is an SA302?

An SA302 is a document provided by HM Revenue & Customs (HMRC) in the United Kingdom. It is a summary of an individual’s income for a particular tax year. The document is often required by lenders when individuals or businesses are applying for mortgages or loans.

The SA302 includes details such as total income, taxable income, and the amount of tax payable. The document shows how HMRC has calculated the tax due based on the information you provided in your Self-Assessment Tax Return.

HMRC has transitioned to providing SA302s in a digital format. Taxpayers can now access their SA302 documents online through their HMRC online account. This has made the process of obtaining your SA302 much easier and quicker than before.

How can we help?

If you need help with your accounts or submitting your Self-Assessment Tax Returns. Get in touch with us today! Our team of experts at A&M Accounting will be happy to help!