Credit Score Basics > What SA302 substitute can you use for a mortgage?

What SA302 substitute can you use for a mortgage?

Wollit Team2 minute read · Updated 14th October 2024

Getting a mortgage can be challenging for anyone, but if you’re self-employed it can be even more so. One of the most important documents that you need to get your self-employed mortgage is the SA302 form. Let’s see how you can get a mortgage without one.

Can I get a mortgage as a sole trader?

Yes, you can get a mortgage as a sole trader, but you will need to give the lender additional documents to verify your income, the most important of which is the SA302 form. Lenders usually look for at least two years of trading history and may also ask for personal and business bank statements.

What is an SA302 form?

The SA302 form is a summary of your income based on what you told HMRC through your self-assessment tax return. It gives lenders a clear picture of your earnings and is often required when applying for a mortgage.

The form usually includes things like:

Your total income for the year;
How much of that was taxable income;
And what was the amount of tax owed.

Lenders then use this information to calculate your mortgage affordability and figure out if you can repay the mortgage.

Why is the SA302 important if I’m self-employed?

The SA302 is so important because it comes from an official source – the HMRC. Lenders trust that the information you gave the HMRC is complete and accurate. HMRC, after all, applies penalties if your tax return is incorrect.

Because of this, lenders often prefer this form over other ways of proving your income, such as bank statements or customer invoices.

Can I get a mortgage without an SA302?

Yes, you can get a mortgage without an SA302 form, but it may be somewhat more difficult. It also depends on the lenders – some lenders may accept other ways of proving your income. These alternatives can include:

Bank statements;
Detailed profit and loss statements prepared by a certified accountant;
Tax returns: some lenders may accept your complete tax returns as an alternative to the SA302.

Finally, some lenders also offer specific mortgage products meant for your situation, which may not require an SA302. These are called “contractor mortgages”. Shop around and see which lenders work with self-employed people and what their conditions are.

How can I improve my chances of getting a mortgage without an SA302?

Not having an SA302 form can limit your options and make it unnecessarily more difficult to get a mortgage. However, even if you have one, it might not be enough – the most important thing for lenders is getting an understanding of how reliable you are as a borrower.

This is why it’s so important to work on your credit score. Luckily, now there are many apps that can help you build and improve credit.

One such app is Wollit. Wollit is an app available both on Android and iOS, and it works by reporting a fixed-fee monthly subscription to all three credit reference agencies. This helps you build your credit history and directly influences your credit score.

On top of this, Wollit can also report your monthly rent payment to Experian. This can add another line in your credit report that shows lenders that you’re reliable and pay your bills on time, helping you make the most of your rent while you prepare to become a homeowner.