Are you in the real estate market for a new home? If so, you’ll likely need an SA302 form. This form is proof of your current income and tax history, and it’s required by most lenders. A mortgage broker would ask you for your SA302 example because it is also required when you apply for a mortgage.
This blog post will explain why you need an SA302 and how to get it.
An SA302 form is also known as a Tax Calculation Summary or a Self-Assessment Tax Return. It’s used to show your income and tax history for the previous year. The form is issued by HMRC (Her Majesty’s Revenue & Customs) and is required by most lenders when you’re applying for a mortgage.
Your SA302 will show:
– Your taxable income for the previous year
– The amount of all the taxes you paid during the year
– Any tax reliefs or allowances you’re entitled to
– Any tax that’s still owed
An SA302 is usually valid for 12 months, so if you’re applying for a mortgage more than 12 months after the tax year, you’ll need to get an updated form.
Why do you need it?
You need an SA302 because lenders use it to assess your affordability. They want to make sure that you can afford the mortgage repayments, and one of the ways they do this is by looking at your income.
If you’re self-employed, lenders will also use your SA302 to assess your business’s financial health. This is because self-employed applicants often have more volatile income than employed.
A mortgage breaker would ask you for your SA302 form because they need to see your income and tax history. This helps them assess your affordability and ensures that you can afford the mortgage repayments.
How to Get an SA302
If you’re employed, your employer will send you a P60 at the end of the tax year. This shows your total incomings and outgoings for the year.
You’ll need to accomplish a Self-Assessment tax return if you’re self-employed. Once you’ve done this, HMRC will send you an SA302. This is an annual tax return that all self-employed people must complete.
You can also get an SA302 by logging into your HMRC online account. From here, you can download and print your SA302. Then, after filling in the information requested, simply post or fax it to your mortgage lender. Soon after, they’ll be able to assess your affordability and decide on your mortgage application.
After you get your SA302, make sure to keep it in a safe place. You’ll need it every time you apply for a mortgage, so keeping it up-to-date is important.
This would be an incredibly good time to start looking for a mortgage broker. A mortgage broker can help you find the best mortgage deal and ensure that you’re getting the most out of your mortgage application. Now that you know why you need an SA302 and how to get it, you’re one step closer to buying your dream home.
Applying for a mortgage can seem daunting, but understanding the process and what’s required can make it much easier. The SA302 form is an important part of the mortgage application process, and it’s something that you should be prepared for.