The Book-keepers Forum (BKF)

Post Info TOPIC: If a client applies for a mortgage


Master Book-keeper

Status: Offline
Posts: 2974
Date:
If a client applies for a mortgage


A couple of clients have mentioned applying for a mortgage, albeit too late in the tax year for me to suggest getting their 2017/18 accounts done by a chartered accountant.

Just a query really as I know the rules have changed. Do banks/building societies still require a chartered to draw up the accounts? If not is the tax calculation and a proper set of books (sole trader) sufficient?



__________________

John

Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.



Guru

Status: Offline
Posts: 837
Date:

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



__________________

Doug

These are only my opinions of how I see things and therefore should not be taken as advice



Master Book-keeper

Status: Offline
Posts: 7644
Date:

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!)


__________________

Joanne

Fallows Hall Ltd

Winner - Bookkeeper of the Year 2015, 2016 and 2017

Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.

Jay


Senior Member

Status: Offline
Posts: 229
Date:

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



__________________


Master Book-keeper

Status: Offline
Posts: 2974
Date:

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.



__________________

John

Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.



Master Book-keeper

Status: Offline
Posts: 7644
Date:

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''.



__________________

Joanne

Fallows Hall Ltd

Winner - Bookkeeper of the Year 2015, 2016 and 2017

Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.



Master Book-keeper

Status: Offline
Posts: 2974
Date:

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.



__________________

John

Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.



Guru

Status: Offline
Posts: 837
Date:

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.



__________________

Doug

These are only my opinions of how I see things and therefore should not be taken as advice

Jay


Senior Member

Status: Offline
Posts: 229
Date:

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



__________________


Master Book-keeper

Status: Offline
Posts: 2974
Date:

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.



__________________

John

Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.

Jay


Senior Member

Status: Offline
Posts: 229
Date:

Thank you for clarifying this and more importantly big congratulations .

Best wishes

Jay



__________________


Master Book-keeper

Status: Offline
Posts: 7644
Date:

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?!!

--------------------------------------------------------------------------------------------------------------------------------------

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.



__________________

Joanne

Fallows Hall Ltd

Winner - Bookkeeper of the Year 2015, 2016 and 2017

Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.



Master Book-keeper

Status: Offline
Posts: 2974
Date:

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.



__________________

John

Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.

Page 1 of 1  sorted by
 
Quick Reply

Please log in to post quick replies.

Tweet this page Post to Digg Post to Del.icio.us
Members Login
Username 
 
Password 
    Remember Me  

2007-2019 The Book-keepers Forum (BKF). All Rights Reserved. The Book-keepers Forum (BKF) is a trading division of Bookcert Ltd. Registered in England Company Number 05782923. 2 Laurel House, 1 Station Rd, Worle, Weston-super-Mare, North Somerset, BS22 6AR, United Kingdom. The Book-keepers Forum and BKF are trademarks of Bookcert Ltd. This forum is a discussion forum only. There will usually be more than one opinion to any question and any posting should not be viewed as a definitive solution. No responsibility for loss occasioned to any person acting or refraining from action as a result of any posting on this site is accepted by the contributors or The Book-keepers Forum. In all cases, appropriate professional advice should be sought before making a decision. We reserve the right to remove any postings which are offensive, libellous, self-promoting or engaged in covert marketing. We will not notify users of removals. The views expressed in the forum posts are those of the individual and do not necessary reflect or agree with those of The Book-keepers Forum. Any offensive or unsuitable posts will be removed by the moderators. Any reader of this forum can request for a post to be looked into by sending an email to: info@bookcert.co.uk.

Privacy & Cookie Policy  About