Mortgage broker Springtide Capital has today reported a growing trend of self employed borrowers who are potentially at risk of significant delays in the home buying process. Most lenders now require self employed individuals to obtain a document from HMRC known as an SA302 form. This is a one page document designed to demonstrate taxable income in the same way they ask for pay slips from employees of organisations.
However, if the self employed individual does not successfully apply in advance for this part of their house purchase, HMRC may take up to three weeks to ensure the document is delivered on time. Broker Springtide Capital has reported that this can, in some instances; result in many individuals losing out on their properties as a result.
Managing Director of Springtide Capital Henry Knight says:
‘Our advice to self employed people is to keep their broker informed at every stage of the process so that they can be as well prepared for this as possible. A good broker can liaise with an accountant well in advance in order to obtain this vital piece of documentation in a significantly shorter space of time than if they were trying to manage this process themselves.’