Mortgage and Company Accounts

[mashetti]

Since I'm on the bench I thought it would be a good time to look around for a bargain property...

Anyway, most mortgage providers require the following for self employed people to prove thier income:

Accounts must be prepared or audited by a Chartered, Certified or Public Finance Accountant, Member of the
Association of Accounting Technicians or Chartered Institute of Secretaries Self-Certification is not available.

Now I've just checked my accounts and as I do the majority myself, they only get a going over by a Chartered Accountant before I submit them. The accounts don't mention his name anywhere so I'm preparing them myself really. Anyone been in a similar situation when trying to get a mortgage and know what to do?

Do I need to get the accounts looked at properly and pay some hefty fee, or can I simply add a little text at the bottom of the accounts saying something like "Prepared by xxx Chartered Accountant". I've already got the usual blurb about being a small company and being exempt etc but does that fly with the banks?

[Alan @ BroomeAffinity]

Since I'm on the bench I thought it would be a good time to look around for a bargain property...

Anyway, most mortgage providers require the following for self employed people to prove thier income:

Accounts must be prepared or audited by a Chartered, Certified or Public Finance Accountant, Member of the
Association of Accounting Technicians or Chartered Institute of Secretaries Self-Certification is not available.

Now I've just checked my accounts and as I do the majority myself, they only get a going over by a Chartered Accountant before I submit them. The accounts don't mention his name anywhere so I'm preparing them myself really. Anyone been in a similar situation when trying to get a mortgage and know what to do?

Do I need to get the accounts looked at properly and pay some hefty fee, or can I simply add a little text at the bottom of the accounts saying something like "Prepared by xxx Chartered Accountant". I've already got the usual blurb about being a small company and being exempt etc but does that fly with the banks?

Ask you CA if he'll certify the accounts. Shouldn't be an issue.

[mashetti]

I contacted one of the lenders in question and they said I could just submit my self assessment as that will show how much I was paid. I know it's a long way off what I really made in the year but the rest of that cash is sitting in the company...

When it comes to it I think I'll also submit my unaudited accounts and any other documentation that shows I actually got paid some money last year. Maybe even a nice letter from my company too wouldn't hurt.

Or, I could just get my accounts audited as stated above! Not sure what would change with the accounts though, ie will it just include something like "Audited by xxx Chartered Accountant"? Why can't I just add that myself as it's only a bank I'm dealing with, and not Her Majesty (although technically most banks these days are Her Majesty's or Gordo's or actually OURS!).

[Alan @ BroomeAffinity]

Lenders need some sort of satisfiction that the accounts you are sending them are true and they won't take your word for it. Its either certified by the accountant or Self Assessment generally.

Although, contractormoney.com (I think) understand the pecularities of contractors and might be able to help you out. Never been involved with them myself but they do get a good name around this forum.

[FarmerPalmer]

Speak to Contractor Money.

All they required to arrange a mortgage with a High Street bank was:

- Current contract,
- CV,
- proof of id and address,
- personal & business bank statements

[FSM with Cheddar]

Speak to Contractor Money.

All they required to arrange a mortgage with a High Street bank was:

- Current contract,
- CV,
- proof of id and address,
- personal & business bank statements

WHS - Was very simple to do

[Little'Old Me]

Since I'm on the bench I thought it would be a good time to look around for a bargain property...

Anyway, most mortgage providers require the following for self employed people to prove thier income:

Accounts must be prepared or audited by a Chartered, Certified or Public Finance Accountant, Member of the
Association of Accounting Technicians or Chartered Institute of Secretaries Self-Certification is not available.

I'm not a member of any of the above, but my clients have no problems - even with the lenders who make the statement you have given!

They give the lender my details on the application form. I then expect to be asked to complete an "accountants certificate, with details of their or their share of the companies income" for them. There is one lender who never writes to me any more. This I am surprised at, as clients ring me when they complete the application form to confirm my qualifications so I know to expect to receive the request. I have never had a client refused a mortgage, but then I have not had a client apply for one that they could not afford.