Regarding the application
If you are a self-employed doctor or dentist and have applied for a mortgage, you will remember that there are more hoops to jump through than for those who are employed. This is due to having to prove your income, through official sources. Well, HMRC are easing the process for the future by making available certain documents on your online account.
Proof of income and tax position
Since the rules tightened, it seems to have made applying for a mortgage, or indeed a commercial loan, even more rigid than before.
Self-employed doctors and dentists have always been required to prove their income stream, typically by 2 or 3 years of financial accounts, with an Accountants Certificate.
However, now many lenders now also require a Form SA302, which is a summary document from HMRC showing your tax calculation for the year in question.
The SA302 basically shows that not only have you prepared your accounts and got an accountant to sign it off, but that HMRC have also agreed with your income figure and tax calculation.
Access to the form online
HMRC have been working with the Financial Conduct Authority (FCA) Council for Mortgage Lenders (CML) to make available the documents that mortgage lenders need to help meet the terms for self-employed applications.
They are subsequently working on making the SA302 and supporting tax “overview documents” available online under your HMRC account.
This will make the whole process more efficient, as whilst these forms are available from HMRC, they currently have to be posted on the back of a phone request – a lengthy process.
Not all mortgage lenders are signed up to accept the documents in the new format, as yet. However, it’s a promising start and a move in the right direction.
Dental & Medical Financial Services help self-employed doctors and dentists obtain the mortgage they require at the best rate. We deal with excellent lenders, many of whom will be signing up to this new process. Call Chris today to discuss further.