A new option for self-employed borrowers
New option for self-employed borrowers
HMRC are currently being swamped by requests from self-employed individuals for SA302s to support mortgage applications. As a result of this they have made some system changes to enable those individuals who self-assess their income online to print off this information themselves. The result of this change is you will start to see new documents called “Tax Calculations” and “Tax Year Overviews” and a summary is as follows:
- Tax Calculation – this contains exactly the same information as an SA302 and is a replica of what the customer would get if he/she called HMRC. The key to this document is that it must show as “100% Submitted” for it to be acceptable.
- Tax Year Overview – this is a record of the amount of tax paid for any given year. This can be used in conjunction with the Tax Calculation to accurately determine how much income has been declared and what tax has been paid.
These changes will come into effect from 12th January 2015 and as a result from this date Promise is able to accept the following from self-employed applicants for secured loans, where company accounts are not being used:
- An SA302 or
- A Tax Calculation, and a Tax Year Overview
Where a self employed customers’ accounts or SA302s are over 6 months old, the most recent full months business bank statement may be required.
This approach has not yet been adopted by all lenders but is available for customers who qualify for Promise’s lowest rates which are available on the Loan Brain sourcing and comparison system at www.promisesolutions.co.uk
01902 585052
Promise Money is a broker not a lender. Therefore we offer lenders representing the whole of market for mortgages, secured loans, bridging finance, commercial mortgages and development finance. These loans are secured on property and subject to the borrowers status.
More than 50% of borrowers receive offers better than our representative examples
The %APR rate you will be offered is dependent on your personal circumstances.
Mortgages and Remortgages
Representative example
Borrow £270,000 over 300 months at 7.1% APRC representative at a fixed rate of 4.79% for 60 months at £1,539.39 per month and thereafter 240 instalments of £2050.55 at 8.49% or the lender’s current variable rate at the time. The total charge for credit is £317,807.66 which includes £2,500 advice / processing fees and £125 application fee. Total repayable £587,807.66
Secured / Second Charge Loans
Representative example
Borrow £62,000 over 180 months at 9.9% APRC representative at a fixed rate of 7.85% for 60 months at £622.09 per month and thereafter 120 instalments of £667.54 at 9.49% or the lender’s current variable rate at the time. The total charge for credit is £55,730.20 which includes £2,660 advice / processing fees and £125 application fee. Total repayable £117,730.20
Unsecured Loans
Representative example
Annual Interest Rate (fixed) is 49.7% p.a. with a Representative 49.7% APR, based on borrowing £5,000 and repaying this over 36 monthly repayments. Monthly repayment is £243.57 with a total amount repayable of £8,768.52 which includes the total interest repayable of £3,768.52.
THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME
REPAYING YOUR DEBTS OVER A LONGER PERIOD CAN REDUCE YOUR PAYMENTS BUT COULD INCREASE THE TOTAL INTEREST YOU PAY. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
Promise Money is a trading style of Promise Solutions Ltd – Company number 04822774Promise Solutions, Fullard House, Neachells Lane, Wolverhampton, WV11 3QG
Authorised and regulated by the Financial Conduct Authority – Number 681423The Financial Conduct Authority does not regulate some forms of commercial / buy-to-let mortgages
Website www.promisemoney.co.uk