Self-employed should submit tax returns early

 

Changes for self-employed applicants

Self-employed mortgage applicants face a tougher process in applying for a mortgage than their employed counterparts as lenders seek extra assurance of stable income, both in the past and going forward.

Not only have many faced tough and unexpected implications for having made use of self-employed government grants implemented to help them through the Covid-19 pandemic, but generally, the roughly 15% of our society who brave going at it alone are arguably more hindered than rewarded in the mortgage world.

Now, as always at this time of year, the process for self-employed becomes even more demanding as many lenders require tax returns to be submitted ahead of time in order to avoid assessing mortgage affordability with figures that are more than 18 months old. As such, those wanting to use their year-end tax figures from 2019-20 must have their mortgage application submitted before October.

For those who have submitted their tax return ahead of the HMRC’s January 31 2022 deadline for this current tax year, this is somewhat of a nonissue. However, for the many who would typically use the full allotted timeframe to submit their tax return, this can be a surprising and unwelcome finding.

Importantly, it should be noted that lenders do not expect the outstanding tax to be paid early, only that the applicant has submitted their tax return. For more information about self-assessment tax returns, please refer to the government website:

Self Assessment tax returns: Deadlines – GOV.UK (www.gov.uk)

Help is at hand

Nevertheless, even if the process for self-employed does have a few more obstacles along the way, here at Xpress Mortgages we help self-employed on a daily basis make their mortgage dream a reality.

Although the majority of lenders do follow this, there are a select few who don’t, while some can use the trading year for Ltd companies – in this case, you are going to need to speak to a mortgage adviser.

Our expert advisers also know the criteria of the lenders meaning they can package your mortgage application in the best way possible, giving it the best chance of being accepted first time.

We have access to the entire market along with an understanding of which lenders would best suit your situation.

If you are self-employed and looking to apply for a mortgage in the near future, get in touch with our friendly team today and we will help you through every step of the process.

01932 350 641
info@xpressmortgages.co.uk
www.xpressmortgages.co.uk