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
2 out of 3 borrowers get a lower rate than our representative example of a regulated secured loan below:
Mortgages and Remortgages
£80,000 over 240 months at an APRC OF 4.3% and a discounted variable annual interest rate for two years of 2.12% at £408.99 per month followed by 36 payments of £475.59 and 180 payments of £509.44. The total charge for credit is £39,873 which includes a £995 broker / processing fee and £125 application fee. Total repayable £119,873.
Secured / Second Charge Loans
£63,000 over 228 months at an APRC OF 6.1% and an annual interest rate of 5.39% (Fixed for five years – variable thereafter) would be £463.09 per month, total charge for credit is £42,584.52 which includes a £2,690 broker / processing fee. Total repayable £105,584.52.
£4,000 over 36 months at an APR OF 49.9% (fixed) and an annual interest rate of 49.9% would be £216.21, total charge for credit is £3,783.56. Total repayable £7,783.56.
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.
If you have been introduced to Promise Money by a third party / affiliate, Promise may pay them a share of any fees or commission it earns. Written terms available on request. Loans are subject to affordability status and available to UK residents aged 18 or over. Promise Money is a trading style of Promise Solutions Ltd. Promise Solutions is a broker offering products which represent the whole of the specialist second mortgage market and is authorised and regulated by the Financial Conduct Authority – Number 681423.
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