Mortgages for Accountants
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Mortgages For Professionals with complex incomes through the main high street lenders
High street lenders typically provide more appealing rates, making them the preferred choice for many professionals seeking mortgage solutions. However, navigating the complexities of professional incomes can present challenges in securing loans from these lenders.
Professionals often assume they must seek alternative lenders due to the intricacies of their income streams. Yet, armed with a deep understanding of various payment structures, we confidently facilitate successful mortgage applications with high street lenders.
In fact, a substantial 93.4% of our mortgage applications are seamlessly processed through reputable high street lenders, showcasing our expertise in navigating complex income scenarios.
Meet the Author
Brian Keane
Director
I am an expert in: Mortgages for Accountants
CIB Level 3 in Mortgage Advice and Practice
Mortgage for Accountants
Are there specific mortgages for accountants?
Yes, some lenders offer professional mortgage products that qualified accountants can access, and these can be more generous on income. That reflects earnings growth potential, particularly for the newly qualified. Registration with an accepted governing body is usually required, and which bodies count varies by lender.
Yes, providing you’re a qualified accountant, some lenders will be more generous around income levels. That’s really on the back of the earnings growth potential – particularly for newly qualified accountants.
Obviously, there’s a history of accountants not defaulting on finance arrangements given they’re so close to the finance industry. So lenders are a bit more generous and more comfortable to stretch what they would normally do for fully qualified accountants.
What criteria do I need to meet as an accountant?
Ideally, the accountant needs to be registered with the appropriate governing body. It does vary from lender to lender which governing bodies they accept.
The most common ones tend to be the Institute of Chartered Accountants for England and Wales, the Chartered Institute of Tax and the Institute of Chartered Accountants of Scotland.
How do lenders work out what I can borrow as an accountant?
The way lenders determine how much you can borrow is what they perceive is affordable for you. They look at your income and any commitments you have, and have a model in the background that confirms what they are comfortable with as a mortgage level.
That mortgage level for a chartered or qualified accountant will quite possibly be slightly higher with some lenders – because they are aware of this growth potential, particularly for the newly qualified. So they will go slightly above what they would normally do. It’s because there’s that clear career path ahead with growth potential in income.
Ultimately, it will boil down to what the lender feels is affordable in each individual case.
Do chartered accountants get better mortgages?
They get more flexibility. Occasionally, lenders do have slightly better terms on their professional products, which they reserve for the likes of chartered accountants, newly qualified barristers, and so on.
So yes, you can get slightly better mortgages from some lenders. It’s really where you need a broker who knows the market and which lenders have a good professional product available at the time.
Can I get a mortgage as a trainee accountant?
You can, based on what your salary is as a trainee. However, once you have passed your exams your employer might promise to increase your salary to reflect the fact that you’re now fully qualified.
We have lenders that will work on that future income, providing there’s a signed contract in place or an email stating the upcoming salary and earnings. But if that’s not on the cards yet, as a training accountant you’re still going to be paid. The amount you can borrow will reflect the circumstances at the time that you apply.
Are mortgages for accountants easier to obtain? Why?
Yes, because generally, accountants tend to have good track records in maintaining their finances. They’re deemed as professional, they’re involved in the industry and there is that historic global track record of accountants being particularly good at meeting their financial obligations.
There are always exceptions to the norm, but generally lenders are keen to lend to qualified professionals, including accountants in the finance industry.
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Do mortgage lenders check an accountant’s qualifications?
They do on occasion. If an accountant is going to apply for a normal mortgage product from any lender, they probably wouldn’t check the qualifications for that.
If an accountant is looking at a professional product that may lend up to 6 times their earnings (this varies by lender), then yes, lenders will check their qualifications with the appropriate governing bodies. They will want to see that the client is on the register of qualified accountants or chartered accountants to get access to a specific professional product.
| Point of difference | Standard product | Professional product |
|---|---|---|
| Income multiple | Based on the lender's usual affordability model | Can stretch above the usual level with some lenders, up to around 6 times earnings |
| Qualification checks | Qualifications not normally checked | Membership of an accepted governing body is normally checked |
| Availability | Offered by lenders generally | Only some lenders offer one, and availability changes over time |
| Terms | Standard terms apply | Occasionally slightly better terms and more flexible underwriting |
How do I prove my income as a chartered accountant? What sort of documents are we looking at here?
If a chartered accountant is employed, it’s normally the last three months’ pay slips and a copy of the last three months’ bank statements – it varies from lender to lender.
If you’re employed, it’s straightforward using those pay slips. If there’s a pay rise due, you may need an email confirming that rise, if it’s due within the next three months. If the accountant is self-employed, the norm is to get copies of tax returns and the tax calculation summary.
If they’re an accountant in a large practice of accountants, with perhaps 100 or more partners, sometimes lenders will work from a letter from the finance partner confirming their share of the profits, and what they’ve been for the last couple of years.
The proof is fairly straightforward, even as an accountant.
| How you are paid | Documents usually requested | Point to watch |
|---|---|---|
| Employed | Around three months of payslips and bank statements | An imminent pay rise may need written confirmation |
| Trainee, employed | Payslips reflecting current salary | Future salary may be used where a signed contract or email confirms it |
| Self-employed | Tax returns and tax calculation summaries | Tax mitigation can reduce the provable income figure |
| Partner in a large practice | A letter from the finance partner confirming profit share | Profit share history over recent years is normally expected |
Which lenders accept practice income as proof of earnings for accountants?
Overall, I would say many lenders accept practice income, because it is a form of self-employed income. Provided you have the right documents and the right amount of proof, all should be well.
Usually for lenders this means providing two years of history. The proof they need to see is your tax calculations and tax year overviews, which were formerly known as SA302s.
There are one or two lenders that look at the practice accounts instead. If that is a partnership, those accounts contain the income of all partners. If there are any confidentiality issues, we need to be made aware of that.
In principle, practice income is a normal income stream which lenders will accept.
What obstacles might accountants encounter when applying for a mortgage?
The key obstacle, particularly if an accountant is self-employed, is that they are experts at mitigating tax liabilities for clients. Unfortunately tax mitigation and obtaining the highest mortgage possible are mutually exclusive.
There’s a happy balance to be found, if an accountant is self-employed, between paying the least tax they’re realistically and legally able to, and actually proving their earnings at a suitable level to get the mortgage they’re looking for.
What mortgage benefits can I expect as an accountant?
It’s about better underwriting and the ability for lenders to be a little bit more flexible. Sometimes you’ll get access to slightly better products under a professional mortgage range.
Can I get a mortgage as a self-employed accountant?
Yes. The lender assesses what is affordable based on earnings you can prove, usually through tax returns and tax calculation summaries, and sometimes practice accounts. The main tension is that reducing a tax liability also reduces provable income, so a balance between the two is needed.
A lender will make an assessment of what they think is affordable for you. That will be based on the earnings that you are able to prove, in the way they want.
That is usually through tax returns and tax calculation summaries, and sometimes accounts for the practice you’re self-employed at.
Again, talk to a broker, because we will know what information and income confirmation is required.
How do I apply for a mortgage as an accountant? How can a mortgage broker help?
Talk to a broker, preferably one that specialises in the professional sector such as Davidson Deem. We cover the whole of the mortgage market and we’re independent, so we’re able to look at all lenders.
We can access and research the whole of the market for you. That saves you from traipsing up and down the high street, seeing lender after lender, and hoping that you end up with one that’s got the best rates in the market for your particular circumstances.
We also have the ability to monitor the rate going forward – so rather than just locking in a rate, applying for a mortgage and forgetting about it, a good broker will monitor that rate up until completion. If it improves, we’ll help you by reducing that rate to one that’s even better.
It’s not just a one-off, it’s a continuing process with any good broker.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
Frequently Asked Questions
That is difficult to say, as all lenders have their own unique criteria. However, undoubtedly, some lenders are more sympathetic to the self-employed than others.
Most lenders will look at SA302’s and tax overviews for income which prove the income declared and the tax paid. Occasionally, a lender may require an independent accountant to verify the figures