BTL Mortgage + Undeclared HMRC Income
Discussion
Something that I've come across recently in addition to some chatter on a few broker forums recently which may act as a forewarning to people on here.....
A broker was contacted by an applicant for a BTL remortgage, all stacked up.....broker asked for copies of the tenancy agreements and bank statements to evidence the receipt of the rent, as normal.
Lender requested HMRC documentation, which was not normal.
HMRC document showed zero for profit from land and property.
Broker ask applicant about it, applicant coughs that they don't declare the income to HMRC.
Lender declines application.
Seems lenders are aligning with HMRC on this.........
A broker was contacted by an applicant for a BTL remortgage, all stacked up.....broker asked for copies of the tenancy agreements and bank statements to evidence the receipt of the rent, as normal.
Lender requested HMRC documentation, which was not normal.
HMRC document showed zero for profit from land and property.
Broker ask applicant about it, applicant coughs that they don't declare the income to HMRC.
Lender declines application.
Seems lenders are aligning with HMRC on this.........
In light of this, I've checked our last 30 BTL applications.
Only one required HMRC documentation.
The majority of the rest required only bank statements and/or tenancy agreements.
Eight applications where we had the above on file as required as mandatory documents, no documents were requested whatsoever at all............
The government have had it in for the amateur landlord for a while now, this seems like another swipe at them.......rightly of course.....the net is tightening.
Only one required HMRC documentation.
The majority of the rest required only bank statements and/or tenancy agreements.
Eight applications where we had the above on file as required as mandatory documents, no documents were requested whatsoever at all............
The government have had it in for the amateur landlord for a while now, this seems like another swipe at them.......rightly of course.....the net is tightening.
Casa1862 said:
Are SA302 a thing of past? Unless you can print them from hmrc yourself they won't send them, most mortgage companies accept a tax computation from accountants filing software and that clearly lists all the property details, including rent received and cost.
That's what I've been asked for for the last three btl applications.
Semantics.That's what I've been asked for for the last three btl applications.
The SA302 is on the way out, being replaced by the tax computation which shows exactly the same information as the SA302.......I've not seen a tax computation yet that detailed rent received or cost......that's not the purpose of the document.
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