Accountants Certificate in UK

An accountant’s certificate is a required document supplied by a trained and certified accountant to support a mortgage application in the United Kingdom. Accountants certificate required by mortgage lenders or banks in the UK. It is used to check and authenticate the applicant’s financial details, particularly for self-employed persons or those with complicated financial situations.

A chartered accountant or certified public accountant in the United Kingdom who is registered with a recognized professional accounting body prepares the accountant’s certificate. It usually contains information like:

Confirm the status of the mortgage applicant whether self-employed or an employee of any company in the UK

Confirm the details of income sources of mortgage applicant like salary, self employed business income, dividends, receive rent, or any other income sources

An accountant’s certificate works as proof of the applicant’s financial stability and capacity to make mortgage payments.

Assessment of the applicant’s tax position currently, including any outstanding liabilities.

Confirmation of the applicant’s financial accounts, if self employed such as balance sheets, profit and loss statements, and cash flow statements

Any additional financial information considered required to support the mortgage application

The accountant’s certificate’s for mortgage objective is to provide independent and expert verification of the applicant’s financial situation, which can mortgage lenders in assessing the applicant’s creditworthiness and making informed judgments on mortgage approval.

What is an accountants certificate in UK for mortgage application?

An accountant’s certificate is mostly required by self employed professionals in the UK who can certify the financial condition of the mortgage applicant. It’s a document required for a mortgage applicant by a qualified accountant to verify the financial details of the mortgage applicant. The accountant’s certificate has the income details of the application from the business, salary, and any others sources like dividends or any rental income all these income sources details will help the mortgage lender to assess the eligibility for a mortgage amount.

How to get accountants certificate for mortgage lenders?

You should follow the below process if you want an accountant’s certificate for a mortgage lender or a bank with whom you are applying for a mortgage:

a) find a qualified accountant: Mortgage lenders or banks who offers mortgage services require an accountant’s certificate who is already registered with recognized professional accounting body in the UK, those are the Association of Chartered Certified Accountants (ACCA) Institute of Chartered Accountants in England and Wales (ICAEW), and the Institute of Chartered Accountants of Scotland (ICAS).

b) submit the financial documents: To create an accountant’s certificate for your mortgage application your accountant will require all your financial documents like previous years’ tax returns, financial statements, bank statements, or any other relevant financial documents which can help the accountant to judge your financial condition.

c) Schedule an appointment: Contact the qualified and registered accountant and schedule an appointment to discuss your mortgage application and provide them with the relevant financial information and documents. You should share details about your income, expenses, assets, and any other financial information relevant to your mortgage application.

d) Certificate preparation: The accountant will assess your financial information which you have submitted to them, they will evaluate your financial status, and create the accountant’s certificate based on their professional judgment and the mortgage lender’s criteria.

e) Receive the accountant’s certificate: Once the accountant’s certificate is prepared for your mortgage application, the accountant will give you the signed and stamped document in the format which is required by mortgage lenders or banks. You can then submit it to your mortgage lender as part of your application.

Also read: HMRC A1 Form

how to get accountants certificate for mortgage lenders

In what format does mortgage lenders require accountants certificate?

It is important to understand the need of accountant’s certificate required by mortgage lender and in which format does mortgage lenders need the accountant’s certificate so they can judge the eligibility criteria of mortgage applicant. Different mortgage lenders have different format in which they the accountant’s certificate so you must check with the solicitor or mortgage lender the format in which they require the certificate. But in the last every mortgage lenders wants to know the financial eligibility of the applicant. To avoid any hassle you should contact qualified accountant who must have created accountant’s certificate in the past and know the requirements of mortgage lenders in UK.

How soon I can get accountants certificate for mortgage application?

The time it takes to get the accountant’s certificate depends on how soon you submitted your financial documents to your accountant and it also depends on the various factors like how busy is the accountant, how much income sources you have as it requires accountant to calculate your income sources, also do you have any liabilities which is subtracted from the total income, also how soon you want the accountant’s certificate. It is good if you speak to accountant directly and explain how soon you want the accountants certificate and solve their queries if they may have regarding your financial documents.

What is the benefit of accountants certificate for mortgage application?

List of advantages of an accountant’s certificate as a document for your mortgage application:

a) Enhanced credibility: An accountant’s certificate adds credibility to your financial information. Mortgage lenders often view it as an independent and professional assessment of your financial position, which can increase their confidence in your ability to repay the mortgage.

b) Fast mortgage application approval: For self-employed individuals providing an accountant’s certificate can fast the mortgage application process. It helps lenders understand your income sources, assess your creditworthiness, and make more informed decisions regarding your mortgage application.

c) Higher chance of approval: An qualified accountant’s certificate provides lenders with certified and verified financial details, which may improve your chances of mortgage approval. It demonstrates that your financial information has been reviewed by a qualified professional and can help alleviate any concerns the lender may have about your financial stability.

Also read: P87 Form

benefit of accountants certificate for mortgage application

Which accountants can give accountants certificate for mortgage application?

Accountants in the United Kingdom who may give an accountant’s certificate for a mortgage application are normally chartered accountants or certified public accountants. They should be members of recognized professional accounting organizations in the UK such as:

a) Institute of Chartered Accountants in England and Wales (ICAEW)
b) Chartered Accountants Ireland (CAI)
c) Institute of Chartered Accountants of Scotland (ICAS)
d) Association of Chartered Certified Accountants (ACCA)

When you find an accountant for your mortgage application you should hire who has previous experience in creating accountant’s certificates for mortgage applications and must be aware of the mortgage lenders’ requirements which will help your application in approval.

Which banks in UK required accountants certificate for mortgage application?

The requirement for an accountant’s certificate may vary between banks and lenders in the UK. While some lenders may request an accountant’s certificate as a standard requirement for self-employed individuals or those with complex financial situations, others may not have this requirement or may have different documentation criteria. Below is the list bank who may offer mortgage services in UK

– Barclays
Santander UK
– HSBC Holdings
– Lloyds Banking
Nationwide Building Society 
– Coventry Building Society 
– Close Brothers 
– Royal Bank of Scotland Group

How much is fees for accountant’s certificate?

Accountant’s certificate requires lot of effort in calculating your total income after all deductions of liabilities and add other sources of income. Generally accountant may charge from £100 to £250 for accountants certificate depends on the how complex is your financial documents and how soon you want the document. You should consult with the accountants for the fees and agree on it before he starts the work for you.

DISCLAIMER: We have written the UK accounting and tax related details for your information only. For professional advice or for any accounting task you require, you may need to speak to a professional accountant near you who can assist you. Please read our disclaimer for more details.