SA302s and Mortgages

For many years, mortgage companies have requested our self employed client's SA302 to provide proof of income to support a mortgage application. This form is issued by HMRC and simply confirms the income that has been declared on the individual's Self-Assessment Tax Return. It has been a point of contention that lenders have insisted on this form as far easier would be to provide a copy of the Tax Return and supporting schedules to a potential lender directly from our client's accountants, without the delay of waiting for HMRC.

Over the last year, we have seen that some lenders now accept a print out of an accountants Tax Calculation form together with a Tax Year Overview from HMRC online. Nonetheless, we have still have several lenders continue to request the SA302s.

From 4th September 2017, HMRC have announced that they will no longer issue a paper copy SA302 as many lenders have now agreed that they do not require them. I truly hope that this is the case, but I am concerned as to why I am still being asked to obtain the form SA302 from HMRC. Please click here to see a list of all the lenders that have agreed to accept an Accountants tax calculation together with a Tax Year Overview.

If you are self-employed or take a significant amount of your income as Dividends and are thinking about a mortgage, then we strongly recommend that you allow us to review this list and seek confirmation that the lender will not require a form SA302 to avoid any unforeseen delays in your mortgage application even if you miss out on a slightly better mortgage rate.
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