Mortgage Declined Because Latest SA302 Was Provisional

Mortgage declined because latest SA302 was provisional is a situation many self-employed applicants encounter, particularly when applying close to the end of a tax year or shortly after submitting returns. Even where income is strong, lenders usually require fully finalised tax documents before approving a mortgage.

This guide explains what a provisional SA302 is, why lenders are cautious about them, and what options may still be available if your application has been declined.

What Is an SA302?

An SA302 is a tax calculation document generated after a self-assessment tax return is submitted. It confirms your declared income, tax liability, and forms a key part of income verification for self-employed mortgage applicants.

Lenders rely on SA302s because they are official, verifiable records that match figures reported to HMRC.

What Does It Mean When an SA302 Is Provisional?

A provisional SA302 is produced when a tax return has been submitted but not yet finalised.

This usually happens when:

• The return was submitted very recently
• HMRC has not yet fully processed the submission
• Amendments may still be made
• The figures have not been fully locked in

From a lender’s perspective, provisional documents introduce uncertainty.

Why Do Mortgage Lenders Reject Provisional SA302s?

Lenders require certainty when assessing income.

A provisional SA302 means the income figures could still change. Even small changes can affect affordability calculations, particularly where borrowing is close to maximum limits.

Key lender concerns

Lenders typically worry that:

• Income figures may be revised downward
• Additional tax liabilities could emerge
• The document cannot yet be independently verified
• The income cannot be relied upon for long-term affordability

For this reason, many lenders have strict policies excluding provisional SA302s.

Does This Apply to All Self-Employed Applicants?

Yes. This applies across different self-employed structures.

Sole traders and partnerships

Lenders usually require final SA302s and matching tax year overviews for at least two years. A provisional figure for the most recent year often leads to a decline.

Limited company directors

Even where salary and dividends are clear, lenders often rely on SA302s to verify total personal income. A provisional document can therefore halt the application.

Can a Mortgage Be Declined Even If Previous Years Are Final?

Yes. This often catches applicants by surprise.

If a lender requires the most recent year’s income and that year’s SA302 is provisional, the application may be declined even if earlier years are finalised and strong.

Lenders generally assess the latest available position, not just historical performance.

Why Timing Matters So Much With SA302s

Timing is one of the biggest causes of avoidable declines.

Applications submitted shortly after the tax year ends or immediately after filing are more likely to involve provisional documents.

Common timing scenarios

• Applying immediately after submitting a tax return
• Applying before the tax year overview is available
• Applying while amendments are still possible

In these cases, lenders often prefer to wait rather than proceed.

How Do Lenders Verify SA302s?

Lenders cross-check SA302s against tax year overviews to ensure consistency.

Both documents must:

• Show the same income figures
• Relate to the same tax year
• Be fully finalised and accessible

If the overview does not yet confirm the SA302 figures, lenders may treat the SA302 as provisional.

What If the Income Will Not Change?

Many applicants know their figures are accurate and unlikely to change.

Unfortunately, lenders do not rely on assurances or accountant confirmation alone. Policy is based on document status, not expectation.

Even where changes are unlikely, provisional status is often enough for a decline.

What Options Are Available After a Decline?

A mortgage declined because latest SA302 was provisional does not necessarily mean the application cannot proceed later.

Option one: wait for documents to finalise

Once HMRC fully processes the return and the tax year overview updates, many lenders will reconsider.

Option two: use earlier years only

Some lenders are willing to ignore the most recent year if two prior years are strong and final. This depends on policy and affordability.

Option three: consider a different lender approach

Criteria varies. Some lenders are more flexible around timing than others.

You can learn more about lender differences in our guide on specialist mortgage lenders.

How Long Does It Take for an SA302 to Become Final?

Processing times vary.

In many cases, SA302s and tax year overviews update within days or weeks, but delays can occur, especially during peak filing periods.

Until both documents fully align, lenders may continue to treat the SA302 as provisional.

Can Bank Statements or Accounts Replace a Provisional SA302?

Usually not.

Most lenders specifically require SA302s and tax year overviews. Bank statements and accounts are supporting evidence, not substitutes.

This is why provisional tax documents often cause applications to stall.

How to Avoid This Issue in Future Applications

Preparation and timing are critical.

Steps that may help

• Submit tax returns well in advance of applying
• Confirm SA302 and tax year overview figures match
• Avoid applying immediately after filing
• Keep copies of fully finalised documents

We explain document preparation in more detail in our guide on what lenders look for on bank statements.

Common Misunderstandings About Provisional SA302s

• “Accountant confirmation is enough”
• “Provisional just means recent”
• “Previous years matter more”

For lenders, document status is non-negotiable.

Key Takeaways

• Mortgage declined because latest SA302 was provisional is a documentation issue
• Lenders require fully finalised tax records
• Timing applications correctly can avoid declines
• Specialist lender routes may still be available

If you want personalised advice, speaking to a regulated mortgage adviser may help clarify next steps.

This guide provides general information only. Personalised mortgage advice should always come from a regulated mortgage adviser.