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Accountant Certificate for Mortgage Application

By Yaz ShawCeMap

Last Reviewed: 31st May 2024

Lenders consider various factors before deciding whether to approve your application when applying for a mortgage in the U.K.

One of the most critical factors is your income since it determines whether you can afford the repayments on the mortgage you’re applying for.

An accountant certificate helps prove your income to a mortgage lender and shows that a qualified professional has prepared your accounts, especially if you’re self-employed.

Here’s everything you need to know about an accountant certificate for mortgage applications.

What Is An Accountant Certificate?

An accountant certificate is an important document prepared by a certified accountant. It provides evidence of your income and expenses to prove you can make regular mortgage payments.

An accountant certificate provides written confirmation from a qualified and independent entity.

It shows the amount of income you’ve stated you earn on your application is correct for getting the mortgage borrowing you need.

The accountant certificate proves to the lender that you have a good financial standing and that your income and expenses are up-to-date and accurate.

It also includes information about your assets and liabilities, tax returns, and debts.

Why Do You Need an Accountant’s Certificate for a Mortgage Application?

When applying for a mortgage, you’re asking the lender to provide you with the funds you need to purchase a property.

The lender must assess your eligibility for the loan based on various factors. To complete a mortgage application, you must provide a range of personal and financial information, including details about your income, financial commitments, and employment history.

The accountant’s certificate assures mortgage lenders that you’re reliable and can comfortably afford the monthly payments throughout the mortgage term.

Mortgage lenders usually require a comprehensive view of your finances, especially if you’re self-employed.

They may want to see stability, consistency, or profitability, and a qualified accountant can help present your situation professionally and accurately.

An accountant with the proper credentials can handle your unique financial situation with expertise and translate your financial information into terms that mortgage lenders can trust and understand.

Which Accountant Can Certify Accounts for A Mortgage Application?

Only accountants with recognised qualifications can vouch for your creditworthiness for a mortgage application. The lender will want to see that a qualified accountant prepared your accounts.

An accountant must be a member of a recognised professional body to be eligible to certify accounts for a mortgage application.

Most mortgage lenders accept Chartered and Certified Accountants certificates as industry standard.

Other recognised credentials include Association of Authorised Public Accountants, Association of Accounting Technicians, Association of International Accountants, Association of Taxation Technicians, and Institute of Financial Accountants.

The table below shows the qualifications and bodies accepted by most mortgage lenders:

Accountancy Body Institute Qualifications Accepted
Institute of Chartered Accountants in England & Wales I.C.A.E.W A.C.AF.C.A
Institute of Chartered Accountants of Scotland I.C.A.S C.A
Institute of Ireland Chartered Accountants, also known as Chartered Accountants Ireland I.C.A.I C.A
Chartered Certified Accountants Association or the Association of Authorised Public Accountants A.A.P.A or its subsidiary A.C.C.A A.C.C.A
Chartered Institute of Management Accountants C.I.M.A A.C.M.AF.C.M.A
Certified Public Accountants Association CPAuk A.C.P.AF.C.P.A
Association of Accounting Technicians A.A.T M.A.A.TF.M.A.A.T
Chartered Institute of Taxation C.I.O.T C.T.A (Fellow)F.T.I.I (Fellow)C.T.A A.T.I.I
Chartered Institute of Public Finance & Accountancy C.I.P.F.A C.P.F.A
Institute of Financial Accountants I.F.A A.F.A (Associate) F.F.A (Fellow)

 

How Can I Get An Accountant Certificate for A Mortgage Application?

You can obtain an accountant certificate for a mortgage application through the following steps:

Step 1 – Find An Accountant

If you don’t already have an accountant, the first step is to find a qualified accountant who can provide the service.

You may need to research to find one who can help since not all accountants offer this service.

Your friends and family can offer recommendations, or you can search online for accountants in your area.

Ensure you check the accountant’s experience and qualifications before hiring them and confirm their registration with a professional body.

Step 2 – Provide Your Financial Information

Once you find an accountant who can provide an accountant certificate, you’ll need to provide them with details of your financial information, including your expenses, income, and any liabilities and assets.

The accountant will use this information to prepare the certificate confirming your income and other financial details the mortgage lender needs.

The accountant is also qualified to offer advice or guidance on managing your finances to improve your chances of getting approved for a mortgage.

Step 3 – Confirm The Lenders Requirements

It’s essential to check the requirements of the lender you’re applying to before you apply for a mortgage. Some lenders can have specific requirements for the content and format of the certificate.

You should ensure the certificate provided by the accountant meets such requirements to make the process easier and smoother.

You can also give the lender additional documentation like tax returns or bank statements to support your application.

Step 4 – Pay For The Accountants Services

Getting the accountant certificate is a professional service, so you should expect to pay for the accountant’s expertise and time.

The certificate’s cost can vary depending on the complexity of your financial situation and the amount of work needed.

Accountants usually charge around £150 to £250 for issuing a certificate.

Ensure you agree on a fee with the accountant before they start working on the certificate and ask for an estimate of the cost in advance.

Once you get the accountant certificate, you can submit it to the lender along with your application.

You should keep a copy of the accountant certificate for your records and ensure all the information you provide is current and accurate.

Final Thoughts

Acquiring an accountant certificate for mortgage applications is an excellent way to support your application and reassure lenders that you can afford mortgage repayments.

The certificate provides evidence of your income and expenses and can present your financial situation accurately and professionally.

You can get an accountant certificate and increase your chances of approval by finding an experienced and qualified accountant, providing accurate information, and confirming the lender’s requirements.

Call us today on 01925 906 210 or contact us to speak to one of our friendly advisors.

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