If a client applies for a mortgage - The Book-keepers Forum (UK)

Leger · Master Book-keeper

If a client applies for a mortgage

Artois · Guru

Hi John

I did a remortgage with Santander a few weeks ago and they only asked for the last 3 years figures and no accounts but I did have to put down my qualifications but nothing about being chartered, I also did a mortgage application last year but this was through a FA (not sure who the provider was) and l only had to send in the HMRC tax calcs again no mention about being chartered

Cheshire · Master Book-keeper

Hi John
Does depend on who the lender is - some are more stupid than the others. SA302 for last 3 years SHOULD suffice, but even some of these get a push back. If they are using a FA its worth asking the question of them before they go any further as applying to a provider randomly and being knocked back for not having the right info can cause issues with credit ratings (and most lenders dont tell you much about the process until you have made the application even when you ask! Mostly as front line staff are far removed from decision makng staff)

Ive just put an email out to an FA acquaintance of mine so might have a bit more of the latest if he comes back to me (usually only a one way street with him trying to get accountancy info from me, so dont hold your breath!)

Jay · Senior Member

Good evening all,

Guidance from HMRC regarding which Building Societies accept forms SA302 to support a mortgage application.

https://www.gov.uk/government/publications/mortgage-providers-and-lenders-who-accept-a-sa302-tax-calculation-or-tax-year-overview

Best wishes

Jay

Leger · Master Book-keeper

Thanks guys, all very helpful, much appreciated. I was a little worried in case someone applied for a mortgage then told they couldn't accept the figures I provided because I wasn't chartered.

Cheshire · Master Book-keeper

Hi John
I got this from that guy I mentioned above. Bit contradictory if you ask me, unless Im reading it wrong!

''Generally (always) lenders ask for the last 2 years SA302s and tax calculation overview which negates the need for accounts on a sole trader.

Net profit is what they will lend on with some taking average of the 2 years, other latest year if increasing etc.

For accounts they are looking for Chartered accountant for either the accounts or an accounts reference''.

Leger · Master Book-keeper

Thanks Joanne

No I read it the same way smile

Unless it's saying some banks/BS will accept tax Sa302 and overview and some will want to see accounts, which should be from a CA.

Artois · Guru

Leger wrote:
Unless it's saying some banks/BS will accept tax Sa302 and overview and some will want to see accounts, which should be from a CA.

That's what I thought it meant, that if they do ask for accounts then they want them by a Chartered Accountant, but judging by the list that Jay posted most lenders seem ok with just the tax calcs.

Jay · Senior Member

I am not disputing any of the above but I am still not sure about Accounts being required from Chartered Accountants. A number of issues arise in that a qualified Practice ( not chartered) could have prepared Accounts for clients for many years and would then need to disengage them to another Accountancy practice to prepare the accounts ? Would you need to delay the Mortgage Application until the next tax year if accounts had just been prepared by a non Chartered Accountant??

I recently prepared accounts for the Home Office, and all that was required was quantification's and governing body.

To add to this, more so in the past, we have supported many mortgage applications and having a quick check on the copies of forms we have retained, they either ask for Qualifications, and or Governing body.

I'm not suggesting anything is incorrect but based on our experience, we have never come across this situation. I guess its down to the Building Society in the end. Perhaps its the "smaller" lender who take the biggest risk that may require this ?

BW

Jay

Leger · Master Book-keeper

Jay wrote:
To add to this, more so in the past, we have supported many mortgage applications and having a quick check on the copies of forms we have retained, they either ask for Qualifications, and or Governing body.

Hi Jay, although I didn't expressly make it clear, I was referring to the difference between a qualified accountant and a non qualified one, so my use of chartered was in fact incorrect. I have been trading for 10 years in September (milestone yay!!) as qbe.

Jay · Senior Member

Thank you for clarifying this and more importantly big congratulations .

Best wishes

Jay

Cheshire · Master Book-keeper

I asked my contact to clarify when, specifically, accounts might be required and got this back.

''Shortly after application lenders will ask for it but they arent always needed as lenders tend to prefer SA302s.

Depends what you want to do as other lenders I have used because they will take an accountants reference.

Basically it depends what you are trying to do then that will narrow down the lenders.''

This particular FA has a greattrack record of getting mortgage deals done, but this is as clear as mud, or what?!!

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Almost 10 years John! Wow. Think I might end up murrrrrdering my clients before Ive been in this lark for that length of time! Well done you.

Leger · Master Book-keeper

Thanks but maybe I ought to clarify I didn't really make it my main job until 2012. I fell into this lark totally by accident when a youth worker who had been mentoring my son asked me to do the books for his new taxi venture. I said yes purely as a sideline then in 2010 a friend set up as a builder and asked me to do his payroll and year end stuff. (His wife did the bookkeeping) He passed my details to a cafe in 2011 and a locksmith in early 2012 and at the same time I got recommended by someone else to a fencer and I thought maybe I ought to do this as my main job.