A quick yet important reminder to landlords to make sure they have their latest SA302 from HMRC when making a buy to let mortgage application. Gary McKenna, consultant mortgage broker at Mortgages for business explains why.
Yes, amazingly I am writing a brief, slightly dull blog on tax returns... Now, before you switch off at the thought of this I would ask that you give me two minutes of your time to explain why.
From 5th October 2016, when you apply for a buy to let mortgage, as part of the supporting documentation, lenders will need to see your SA302 for 2015/2016 as well as for 2014/2015. SA302s for 2013/2014 will no longer be accepted. The reason for this is that for applicants to be considered for a mortgage, lenders require tax documents to be no more than 18 months old.
An SA302 is like a receipt and is issued by HMRC once you have submitted your annual tax return. It confirms how much tax you have paid as well as any tax due and any penalties and interest. If you submitted your tax return online, you can print out your SA302 as well as tax year overview for any year. To do this, log into your HMRC account and go to the ‘Important information’ section on ‘At a glance’ where you will find instructions for printing.
If you submitted your tax return by post you will need to request an SA302 which could take a couple of weeks to arrive, so it’s worth asking HMRC for it now if you plan to apply for a buy to let mortgage in the near future.
Hopefully this information is useful to know as failure to provide your latest SA302 will only result in application delays.
For more information on the buy to let market take a look at some of the other blogs I have recently written… thankfully not tax related.
Stress tests: Why you can borrow more via a Ltd Co
Why you should consider five year fixed rates
Why brokers at Mortgages for Business love Keystone
Gary McKenna has left Mortgages for Business for pastures new. For more information or for any questions relating to this blog, please contact the Buy to Let Team on 0345 345 6788, where one of our consultant mortgage brokers will be happy to assist.