Mortgage for Accountants

Do mortgage lenders check an accountant’s qualifications? How do I prove my income as a chartered accountant?

If you’re a trainee accountant or you’re moving to a new firm, some lenders will potentially take that new income – as long as you’re within three to six months of starting the role. Mortgage lenders may review your qualification on the website for the body you’re qualified with.

Also, if you’re employed, lenders will want your latest payslips. If you’re self-employed, most want the last two years’ self-assessment documents or last two years’ company accounts, depending on whether you’re a sole trader or limited company director.

Some lenders only require the latest year’s documents, so if you’ve only been self-employed for a year, there are still mortgage options for you.

What obstacles might accountants encounter when applying for a mortgage?

Some accountants find it challenging to borrow the amount they want. Finding a lender that can increase that borrowing capacity can be really useful.

Some accountants may have recently changed to become self-employed. Again, it’s about finding a lender with the flexibility to support this. Even if you haven’t done a year in your current role, potentially lenders can consider it. They would look at your earnings when employed to help them explore it.

Can I get a mortgage as an accountant if I have bad credit?

Yes, but it would depend on the severity of that bad credit. You may need to put down more deposit – starting at around 15%. I would recommend speaking to an advisor, as we can assess the circumstances and confirm what’s possible for you.

If it’s just a few missed payments, for example, you probably can still access higher Loan to Value ratios with a 5% or 10% deposit, depending on your credit score.

But if you have a default or a CCJ, that requires a bit more investigation. Most options there start with a deposit of 15%. However, depending on when the issue was, you might be able to pay less than that.

What mortgage benefits can I expect as an accountant?

You’ll potentially see greater flexibility on some criteria and higher borrowing capacity. Some lenders say they can go up to six times income, which can really boost what you can borrow in certain situations.

Can I get a mortgage as a self-employed accountant?

Yes. Lenders will require the last two years’ self-assessment documents as standard. If you’re a sole trader, that would be your SA302 and tax year overviews.

If you are a limited company director, they’ll ask for your last two years’ company accounts. Some lenders can look at just the latest year if you have been self-employed for less time.

Most lenders take your average income over the last two years, while some can potentially just use the latest figures if they’re higher. There are lenders that potentially can help you in all kinds of scenarios.

Can I get a Buy to Let mortgage as an accountant?

Yes, you can obtain a Buy to Let mortgage as an accountant. The affordability will be based mainly on the rental income of the property. Some lenders also have a minimum income requirement that you’ll potentially need to pass.

Buy to Let mortgages are available for first-time buyers and first-time landlords, although not all lenders offer these. Being an accountant won’t necessarily cause any issues – it’s more to do with whether you have any landlord experience. If you are a first-time buyer, you’ll find there are fewer lenders available, but there are still some that will look at it for you.

How does remortgaging as an accountant work?

A remortgage process is similar to when purchasing a property. Mortgage lenders will still assess your income and credit score, and value your property.

You’ll have an option to stay with your current mortgage lender, which is called a product transfer. That can be quicker, as it doesn’t require all the normal checks of a full remortgage, but it won’t allow you to make any amendments like changing the term.

The best option for you will depend on your needs. It might be worth moving to a new lender, or better to stay with your current one. It’s just about assessing those options.

How can I increase my chances of getting a mortgage as an accountant?

Preparation is key to achieve the right outcome. Ensure you have a good credit score. Speak with a mortgage advisor prior to starting the process, and advise them fully of your circumstances.

If you do have something that’s slightly more tricky, like you’ve only been self-employed for a year or you’re finding it hard to borrow the amount you need, a broker will help you find a mortgage that works for you.

How do I apply for a mortgage as an accountant? How can a mortgage broker help?

We can help make sure you have a smooth process and find the right lender for you straight away. If you want to purchase a home, you need to have an offer accepted on that before you can actually apply for the mortgage.

However, you can get an Agreement in Principle before that, and I would recommend that. You will then know exactly what you can borrow, and that you pass credit scoring with those lenders.