HMRC Tax Calculation Evidence for Mortgage Loans

HMRC Tax Calculation Evidence for Mortgage Loans.

HMRC has this week issued an update advising that they will no longer be able to provide copies of the SA302 (tax calculation) by fax which may mortgage lenders request to support a mortgage application.

The tax calculation is seen as the only unequivocal evidence to confirm what your exact gross income and net income is in a given tax year. This is invaluable for mortgage lenders who are required to look at the suitability and affordability of a mortgage not just today but also in times of economic stress e.g. when interest rates rise.

HMRC will still be able to offer a copy of the tax calculation by post of via an online ‘self-serve’ operation where participating mortgage lenders can actually access the tax calculation online, with the permission of the borrower.

There are currently 36 mainstream lenders currently participating in the ‘self-serve’ facility, so this withdrawal of the fax facility should not affect the speed of most mortgage applications.

Comment

It makes sense to save money by not sending faxes and using online self-service to automate the process.