Santander announces cut-off date for 2022/2023 self-employed mortgage income evidence
Santander for Intermediaries has announced the cut-off date for self-employed mortgage applicants to be able to use their income.
From Monday, 7 October, Santander will no longer accept income evidence if the most recent year end is for the 2022/2023 tax year. The bank would need more evidence of up-to-date income. Like most other lenders, Santander says for all self-employed income evidence, the most recent year end must not be more than 18 months before the date of the application.
When submitting a mortgage application, self-employed borrowers must provide evidence of their earnings over the last two to three years to qualify. However, some lenders will accept one year’s records for newer businesses.
Typically, lenders will want proof of income in the form of accounts prepared by a certified or chartered accountant or through self-assessment tax calculations (SA302 forms), which can be accessed on the HMRC website.
Aaron Strutt, product director at Trinity Financial, says: "Most banks and building societies will not accept accounts older than 18 months, so if you are applying for a mortgage, you need to check your figures.
"Lenders are keen to lend to employed and self-employed borrowers. Mortgage rates have come down a fair bit recently, so mortgages are better valued for money."
Lenders are becoming more flexible to the self-employed
Metro Bank for Intermediares will accept accounts 21 months old in accordance with HMRC guidelines.
Virgin Money still accepts figures from the most recent March/April accounts, therefore 21 months. This is because it understands that you have nine months after the recent year end to submit figures to HMRC. The bank will want to see a minimum of two full years' Net Profit figures but will accept any combination of accounts, such as sole trader or limited company income.
Halifax for Intermediares accepts the last two years Tax Calculations and corresponding Tax Year Overviews or the Last two years finalised accounts. Where the customer has been trading for less than two years, a minimum of one year's accounts will be considered. The latest three months' bank statements for the account, which is used for business purposes, may be required.
Call Trinity Financial on 020 7016 0790 to secure a self-employed mortgage or book a consultation
The information contained within was correct at the time of publication but is subject to change.
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