Getting a Mortgage
Getting a mortgage is hard enough at the best of times, especially in this day and age.
Couple that with being self employed and the whole process can be a bit of a nightmare.
I regularly help clients to prepare a reference and financial information pack for their lender - a standard process but one that many (including some lenders and mortgage advisors) do not seem to understand how to handle for the self employed or owners/shareholders/directors of limited companies!
Moving house is stressful
Delays in obtaining a mortgage add to this stress.
The key is preparation!
If you work for yourself either as a sole trader/self employed or as a director of a limited company make sure that you get your ducks in a row ready for that mortgage application process to swim along smoothly ...
- Lenders no longer accept the form SA302. We now provide them with your tax calculation to show how much tax you paid and a copy of your tax overview for the required years.
- Make sure that you have your accounts up to date with all of the documentation to hand - you may need a profit & loss account and balance sheet.
- Go back and find the same for the last three years! You will need at least the current & last three years to satisfy most lender requirements.
- If you haven't had your own business for 3 years then you will need your PAYE P60s and/or P45s for the same period.
- The objective is to have a clear statement of proof of earning for the last three years and this current year.
- You will need to get the proof of earning signed off by one off our accountants here at 1st Stop Accountancy and Tax Services Bristol Ltd.
- Make sure that you tell us about the house move in plenty of time. It is usual that the lender will want us to complete a reference - so we need to schedule in the time to do this. Don't just drop this on us at the last minute!
- Please bear in mind that we will not just sign off proof of earning on your say so. We will want to prepare/check your accounts and be able to verify the earnings via self employment returns and self assessment etc.
Hopefully this will help a little to alleviate the stress of the mortgage application.