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:

1. 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.
2. 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 12^th 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:

Key Criteria & Application Guidance

1. An SA302 or
2. 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

www.promisemoney.co.uk

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