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!

• 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.