HMRC Time to Pay arrangement & Mortgage Application in 2021

[shaunmeredith34488]

Hi guys,

Long time lurker -

Looking to take advantage of HMRC's Time to Pay offer - for the sake of a few hundred £ in interest I can effectively borrow a fair chunk of cash to put towards a property I'd like to buy / renovate in 2021.

Which brings me onto my question - will signing up for such a scheme have an impact on a mortgage application in the same way a bank loan / credit cards would? Or does it fall into the same category that a student loan would for example, where it doesn't have an effect on your credit score?

Many thanks,
Daniel

[Caddyshack]

I don’t think the time to pay will register but lenders will normally ask for tax yr overview to show you have paid the tax according to the tax comp (sa302) the timing will be critical as the lender will want to see proof of 19/20 tax yr, nothing after that.

(I am a mortgage broker)

[anonymous-user]

That's interesting. Where are you based, Caddyshack?

[Caddyshack]

rockin said:

That's interesting. Where are you based, Caddyshack?

Hi, near Guildford sorry but I do 99% of my work over phone and internet now.

[Sarnie]

shaunmeredith34488 said:

Hi guys,

Long time lurker -

Looking to take advantage of HMRC's Time to Pay offer - for the sake of a few hundred £ in interest I can effectively borrow a fair chunk of cash to put towards a property I'd like to buy / renovate in 2021.

Which brings me onto my question - will signing up for such a scheme have an impact on a mortgage application in the same way a bank loan / credit cards would? Or does it fall into the same category that a student loan would for example, where it doesn't have an effect on your credit score?

Many thanks,
Daniel

As Caddyshack says, they will ask for your 2019-20 Tax Overview form to evidence the tax has been paid for that year.......once you are past 31st January 2021 they will expect the Tax Overview form to show as zero tax to pay..........I would expect them to look on it dimly when they are told that you didn't have the funds to make the payment and saying that you did but chose not to won't look good either.......

As per the mortgage holiday payment facility, in my opinion, only take up the option if you really, really have to..........not just because it's available to you.

[Caddyshack]

Depending on what the books look like you may be able to do it on the Santander accountants certificate but lenders are not silly and may ask for more docs.