If you’re reading this article it is likely that you are working as an accountant in the UK. As somebody who gives financial advice, you will be well used to helping people manage their money when they’re saving up for a mortgage. But in this article, we will give you some information that can be of service to you, especially if you’re currently in the process of trying to get a mortgage for your new property purchase.
Can accountants get help when looking for a mortgage?
Of course. Here at YesCanDo Money, we offer free mortgage advice to everyone in the UK regardless of their profession. Your professional career path can benefit you and we know exactly how to make the most of that. We are a No FEE mortgage adviser, meaning you will get free support when looking for the best mortgages. Getting a professional mortgage means you have more to benefit from with increased lending and more. We know the top lenders to use for professionals and have years of experience choosing the best mortgages for professionals, including accountants in the UK, so get in touch with us after reading our extensive guide.
Mortgages for Professionals
How do lenders work out what I can borrow as an accountant?
Mortgage lenders will use affordability calculators when looking at your application. As part of your affordability assessment, these are used to determine what a lender’s client can safely afford to borrow without you landing yourself in financial difficulty. These calculators are also there to safeguard their own interests, as lenders need to know they are offering you an amount you can safely afford to repay back to them. Each lender has its own affordability calculator so you might be offered different borrowing amounts when you’re shopping around. For income multiples, the average lending is 4x your income and for professional mortgages, this can be as high as 5.5x your income.
You can make the process simpler and get the most out of your professional income by speaking to a mortgage broker such as ourselves. We have access to the calculators today’s lenders use, so we can do all the necessary research on your behalf. It is a good way to save time and have higher hopes of matching with a mortgage lender with the best borrowing amount that best suits your house purchase price goal. Our amazing service is also free!
Are mortgages for accountants easy to obtain?
As many accountants earn sizeable salaries, getting a good mortgage deal shouldn’t be difficult for you. Lenders and intermediaries will recognise the fact that your earnings are high and that should give you a degree of flexibility when choosing the right mortgage. They will also recognise the fact that you are probably in the accounting profession for life after spending time getting qualified, so this will stand you in good stead when looking at your application. However, you still need to pass the lenders’ affordability assessment which is all about transparency as well as choosing the best-suited lenders.
Mortgages are a little harder to obtain for those who are self-employed, and this might apply to you if you’re working for yourself. If your income hasn’t been very stable, perhaps because you are newly self-employed, or because you have experienced a shortfall in clients, you might have trouble getting the best mortgage deals. Self-employed mortgages affordability is viewed across 1-2 years worth of accounts rather than the 3 months for some who is employed. This is because lenders assess your net income when determining your affordability, and they want to know you will have the means to pay your monthly instalments. It’s not to say that you won’t get a mortgage offer that’s a good deal, especially if your credit score is good and you can prove your ability to repay the mortgage. But to help you overcome any obstacles, our team of mortgage advisers can help you. We have years of experience in helping those who are self-employed, so we understand the challenges that can sometimes face those working for themselves.
Of course, no matter your employment status as an accountant, be you a seasoned professional working for a company or a self-employed freelancer, you will still need to pass the lender’s mortgage checks. As we suggested, this will include credit checks, and they will also assess your income and expenditure when looking at your affordability. If you aren’t seen as a lending risk by the lending criteria, you should be guaranteed a specialist mortgage.
How do I prove my income as an accountant?
You will need to prove your income as part of your application so this is something you should prepare for in advance. You will need at least 3-6 month’s worth of your payslips if you’re working for an employer, and you will need 3 years’ worth of accounts if you’re working self-employed.
If you are newly qualified or employed, you obviously won’t have many payslips from your employer. However, your working contract can be used to assess your income, as this will detail the earnings you are likely to make while you’re in the job.
If you have only been self-employed for a few months, lenders will usually accept the accounts you do have. They will also accept the SA302 tax statements that the HMRC will give you if you have filed your annual tax return.
How can I get a good deal on my accountant’s mortgage?
To get the best possible specialist mortgage deal for your property purchase, there are a number of things you can do. Below are some of the best practices to increase the likelihood of you achieving the best mortgage for your property.
Gather your financial documents
First, make sure your financial paperwork is up to date when preparing to show evidence of your spending and earnings. These will include your bank statements, so be careful with your money. If there are signs that you spend more than you earn, the lender won’t look very favourably at your application. It’s a good idea to get on top of any bad spending habits before you apply for the mortgage. You should also pay off as much debt as you can to reduce your debt-income ratio.
Check your credit score
Secondly, check your credit score. Your credit rating could affect the chances of you getting a decent mortgage deal, so check your credit score with Experian, Equifax, or ClearScore. If you notice any errors on your credit report, do what you can to amend them. There is plenty of advice on how to do this online. If there are no mistakes, but your credit score is low, do what you can to improve your credit rating before making your mortgage application.
Choose a highly rated no-fee mortgage broker
Another way to improve your chances of getting a good deal is to speak to a mortgage broker. As you’re on our website, we recommend that you speak to us for free impartial mortgage advice. We can help you locate the best mortgages for accountants, some of which you can’t be found through a Google search or from lenders on your local high street.
What mortgage benefits can I expect as an accountant?
If you’re a high earning accountant, you will benefit from a potentially large mortgage loan amount because of your financial status. You might also be eligible for a ‘high-income multiple mortgage,’ which means as a professional you could borrow a mortgage for up to 5.5 times your salary. Some of the lenders we work with can guarantee this benefit so speak to us to learn more.
With high earnings or proof of a future high income, you will also benefit from more competitive interest rates. Flexible terms and a reduced deposit are two other benefits you might be able to expect as an accountant, as well as a speedy mortgage decision in principle which will give you the incentive to start your house hunting in earnest.
What is a mortgage decision in principle?
When you decide the time has come to buy a new property, the estate agent you choose will want to know that you are a serious buyer. When you put in a purchase price offer, some estate agents won’t take you seriously unless you have proof of your finances. This is proof that you are good for your money and is usually called a ‘decision in principle’ (DIP), an ‘agreement in principle’ (AIP) or a ‘mortgage in principle’. This will let the estate agent know you can potentially afford the property you are looking at, and it will do much to satisfy the questions of any home sellers too.
But what is a ‘decision in principle?‘ Well, it is something the mortgage lender will give you to say that they are prepared to give you a mortgage. It will include a declaration on your mortgage borrowing with details of how much money they think you will be able to borrow. This is helpful to the estate agent as they will know how to help you find a house that is right for your financial status. And it is helpful to you, as you won’t waste your time looking at houses that you can’t afford. It might even give you cause to look at houses that you may have assumed you wouldn’t be able to afford. The ‘mortgage decision in principle’ doesn’t always guarantee that you will eventually get the mortgage. If any issues arise within your application, you might still get turned down. However, both you and the estate agent can go forward in faith with the knowledge that, in principle, you are suitable for a mortgage offer.
To get a ‘mortgage decision in principle,’ you can speak to any lender. However, to get this right, get in touch with our expert team. We can create a mortgage decision in principle for you very quickly. We will ask you for the answers that different lenders will want to know, such as details of your earnings and any debts you might have. We will then advise you as to which mortgage lender will suit you best, meaning you won’t have to waste your time going from one to the next when trying to get something in place.
Speak to YesCanDo Money today
Ready to put an offer in on a property? Contact our mortgage advisers for free advice and our team will get that ball rolling today!
As one of the UK’s leading FREE mortgage brokerages, we can provide the advice and support you need when trying to get a mortgage as an accountant. We have helped many people over the years, including those within the accountancy profession, so you can expect an exceptional service when you choose help from our experienced professionals.
In the UK, there over 90 different banks and building societies with over 14,000 different mortgage deals available. That is a lot of mortgage options but with our help, we will narrow down your search until you find the mortgage lenders that are right for you.
We have sorted professional mortgages for a range of professional mortgage customers over the years such as Accountants, Architects, Actuaries, Barristers, Chartered Surveyors, Dentists, Medical Doctors, Optometrists, Pharmacists, Solicitors, Veterinarians, Teachers & Police.
Get the best mortgage rates with free support throughout the application.
YesCanDo money is a trading name of Roberts Financial Services Ltd which is authorised and regulated by the Financial Conduct Authority. Your home may be repossessed if you do not keep up repayments on your mortgage.
