Published 28 December 2018 · Last reviewed 28 December 2018 · Older article — see current rates
Choosing the wrong Accountant for mortgage purposes may lead to disappointment
What qualifications should my Accountant have to support my mortgage? On the face of it you may have been unaware that certain Tax Advisors are unable to vouch for your financial well-being when it comes to getting a mortgage. For example there are well known franchises that operate Accountancy Practices but when you search their websites or ask the question certain they fall below the required standard by Mortgage Lenders.
Signing off Accounts for Mortgage Purposes is a serious matter. Over inflated figures could lead to unsustainable levels of debt so the Mortgage Lenders take it very seriously.
What qualifications should my Accountant have to support my mortgage?
The short answer is the qualification should be Chartered and Certified Accountants, however below is an expanded list:
- Association of Chartered Certified Accountants.
- Certified Public Accountants Association.
- Chartered Institute of Management Accountants.
- Chartered Institute of Public Finance & Accountancy.
- Chartered Institute of Taxation.
- Institute of Chartered Accountants in England & Wales.
- Institute of Chartered Accountants of Scotland.
Others that are also normally considered include: Institute of Financial Accountants; Association of Accounting Technicians; Association of Authorised Public Accountants; Association of International Accountants; Association of Taxation Technicians.
What happens to my mortgage application if my Accountant does not have the necessary qualifications to support my mortgage?
Well the wrong Accountancy qualifications can take you in the following different directions:
- A suitability qualified Accountant will need to found who is willing to take on the work from your existing Accountant (or to start from scratch). This will incur additional costs and the Mortgage Lender will need to get reassurance that their short time overseeing your business is sufficient to vouch for your fitness for a mortgage.
- You could differ back to your self-assessment returns (HMRC Tax Calculations). However the downside is they could represent a historic position on your earnings and cannot provide the Mortgage Lender with a projection on future earnings. In the case of a limited company retained income in the firm could not be used. It may also force you to file your self-assessment early.
Niche Advice is a Mortgage Broker, not an Accountant, but we recognise how important it can be to have the right Accountant in place. Furthermore we are happy to ask them directly for the information required to portray your business in the best possible light to maximise your borrowing potential.
Niche Advice offers mortgage advice to applicants with or without Accountants. For more information please complete the contract form on this website or call T: 020 7993 2044.