What’s the key to unlocking your next property purchase?

Making sure your finances and tax documents are in order will help to unlock mortgage offers Picture: MJB Avanti

Making sure your finances and tax documents are in order will help to unlock mortgage offers Picture: MJB Avanti - Credit: Archant

If you’re looking to take your first or next step up on the housing ladder, accountancy experts MJB Avanti have some useful advice.

MJB Avanti can help with tax return needs to ensure you're in the best position when looking for a new mortgage

MJB Avanti can help with tax return needs to ensure you're in the best position when looking for a new mortgage - Credit: Archant

The housing market is currently seeing a boom despite the uncertainty surrounding the economy in the face of a second wave of Covid-19. Statistics provided by the Nationwide House Price Index show us that house prices in September saw a 5% rise on the prior year. While this sounds like good news, it is leading to inequality in the market.

Doors are not opening for all applicants

In some cases, applicants employed by companies exposed as following negative trends, such as increased redundancies, are being automatically declined.

The days of the 90-95% mortgage seem to be a long and distant memory, with deposits of 15-20% now being the norm.


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While the stamp duty threshold increase buoyed the market, first time buyers are facing challenges. Figures from the MoneyFacts Group show that properties valued £500,000 and above actually make up a larger percentage of sales compared to the same quarter in 2019.

Consequently, lenders are scrutinising applications and you are required to provide much more information than previously expected.

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How can MJB Avanti help you?

If you are self-employed, one thing you will be asked for when applying for a mortgage is your SA302 tax summary.

It is a common mistake to ask for the wrong year, as applicants fail to allow for the fact that an SA302 is only valid for 18 months – for example, if you applied today, your 17/18 tax year summary would already be out of date.

If you want a mortgage you will therefore need to ensure you get your personal tax for the 2019/20 tax year submitted to HMRC.

Sole traders, partners and directors are generally required to provide two year’s SA302s. Employees are required to provide three month’s payslips, unless you’re in a new job.

In addition to the SA302s, you also need to include a Tax Year Overview – this confirms any tax outstanding. If you do have tax outstanding your application will get rejected until paid. Once you have paid any outstanding taxes, you will need to get a refreshed Tax Year Overview to confirm this before your application will be re-considered.

Remember, if you have a tax return to file, your deadline for submission and payment of tax liabilities due is January 31.

In a time when applications are being scrutinised, you need to ensure your finances are transparent and in good order. MJB Avanti and Trust Financial Solutions can help to maximise your chances of an application being accepted.

MJB Avanti can help with tax return needs, for example if you have an outstanding tax return to file so you can provide the required SA302s. Recently, MJB Avanti fast tracked a client so he could get his figures to the broker on time – it’s a modern accountants with traditional values. Trust Financial Solutions can help guide you through the mortgage maze and pass the “additional layer” of COVID-19 questions with ease, so that you can buy the home of your dreams.

To contact MJB Avanti call 01473 558866 or visit www.avantitaxaccountants.uk.com

To contact Trust Financial Solutions call 01787 860770 or visit www.trustfinancialsolutions.co.uk

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