Mortgages for Accountants UK

Can I get a mortgage as an accountant?

There’s absolutely no reason why, depending on circumstances, you won’t be able to get a good mortgage offer even if you’re a newly qualified accountant.

Lenders are going to look at your employment status and history, your income and outgoings and your credit score in the same way that they would all mortgage applicants.

Your status as an accountant should guarantee you get the benefit of some very favourable mortgage offers, and it’s important that you get the right advice so you don’t miss out on the very best deals available to you.

What sort of accountant’s mortgage can I get?

Everyone’s circumstances are different, and your offer is going to be dependent on your personal financial and employment circumstances.

In order to get the best possible deal, there’s some basic things you can do to help improve your application chances: –

  • Check your credit score, and correct any errors on your report
  • Ensure you’re on the electoral register
  • Gather all the supporting information that your broker will need for the application – ID, utility bills, bank statements – ahead of time
  • Make sure that your year end accounts and HMRC accounts are up to date if you’re self-employed or a business owner, or gather all your payslips and end-of-year statements if you’re employed

How can I get a good deal on accountant’s mortgages?

As above, preparing in advance by having all your paperwork and information ready will be hugely beneficial.

To get the best possible deal, you should make sure you speak to a specialist mortgage broker/adviser as early as possible in the process. They will be able to locate the niche, specialist mortgages offered by mortgage lenders that you won’t be able to find on the High Street.

What are the benefits of an accountant’s mortgage?

Qualified, including newly qualified and even nearly qualified accountants can potentially take advantage of a wide range of accountant’s mortgage benefits, including:

  • High income multiples, suitable for high-earners or high net worth individuals
  • Potentially large mortgage loans available even for recently-qualified accountants (ACA or similar)
  • Competitive interest rates sourced from a wide variety of lenders across the UK
  • Variable income mortgages possible depending on the lender
  • Possible reduced deposit for some accountants
  • Fast in-principle decision so that you can begin your house-hunting in earnest
  • Potential flexible terms and other benefits available

Can I get an accountant’s mortgage if I’m self-employed?

Accountants are often self-employed, and many banks and lenders all have varied procedures and criteria regarding mortgages for contractors and freelancers. That’s where using a specialist mortgage adviser can be a vital part of your application process.

While it’s a generally held truth that accountants are often very high earners, many do fall within that self-employed category, meaning they’re going to need the help of a specialist broker to advise them as to which lenders will be most suitable for them.

Our specialist team of experts know that sometimes, accountants’ earnings can be up and down, and that this is especially the case in the early days of establishing a new accountant’s practice. The downside of this is that accountants can be excluded by some mainstream lenders from the best available deals, which is why it’s important to combat that by appointing an expert mortgage broker to work on your behalf.

You need someone who will be able to understand that you may have limited yourself or your company for tax liabilities, but you still want to be able to get an attractive mortgage offer. That’s where we come in.

Will I have to prove my income if I apply for an accountant’s mortgage?

If you are employed by an accountancy firm, or as an accountant within a different type of business, then all you will need are copies of your payslips in much the same way that every employee has to prove their income.

If you are self-employed, then although things can initially get a little more complicated in terms of the things you will need to gather, overall it shouldn’t prove to be too onerous.

Some lenders may ask for a full three years’ worth of accounts, others will want at least two years’, and some will even be happy with just the one year of accounts. In every case, these must be prepared by a chartered accountant (not you!). Lenders will also expect to see copies of your SA302 year-end tax calculations from HMRC, usually in addition to your year end accounts.

How much can I borrow on an accountant’s mortgage?

All mortgage applications are subject to a fairly standard affordability assessment, and this can of course limit how much you can borrow if you are already heavily financially committed, for example.

Overall, the total amount you can borrow is based on a number of factors, including your monthly income and outgoings, any other financial commitments and also your credit rating is part of the overall factor.

If you have a sizeable deposit this is often helpful, however it may not be necessary so it’s genuinely best to ask your adviser for their input on this.

By | 2020-03-27T11:19:42+00:00 March 27th, 2020|