for the accountants on here...

[tony84]

I have been noticing something more and more over the last 6-12 months. A lot of lenders are changing their stance on proof of income.

The typical was 1-3 years accounts or SA302s if a sole trader. Over the last 6 months or so I have noticed 3 lenders withdrawing from accepting SA302s and either only accepting accounts signed off by someone suitably qualified or an accountants reference (typically its the accounts they want). Admittedly it tends to be more of the smaller building societies but just last week Woolwich/Barclays brought in some changes.

Thats in addition to another lender who did something similar earlier in the year.

After sitting with an account manager last week it seems the reason behind it is HMRC noticing that people are asking for SA302s and the once requested reducing the figures down...

So just worth thinking about if anyone says they are looking to purchase or remortgage that getting accounts now could save a whole load of stress and time when it comes to making an application.

 

[UK Contractor Accountant]

Time to get my Accountants disclaimer updated?

Always put a heavy disclaimer on mortgage references just in case they are looking for a scapegoat if things go wrong.

Another good reason why you should not get your accounts done cheap on referal/bidding sites. You then may need a qualified person with a Practicing Certificate to sign off the Accounts.

 

[Bob]

.. or even a practising certificate
Hope this link works and you don't need to log in. It shows the issues when asked for these references

 

[tony84]

Interesting read. virgin Money are pretty big on accountants references.

 

[Mike Conroy]

This has been going on for a while now just look at PPH the amount of unqualified accountants advertising for their work to be signed off.

I personally do not take on that type of work luckily all the major high street banks accept references etc from my professional body.

however, people getting their accounts done on the cheap beware.

 

[UK Contractor Accountant]

Is it the taxpayer that is allegedly changing the figures on the Tax Return once they have got their mortgage offer or do Accountants actually do this?

 

[john1989]

Is it the taxpayer that is allegedly changing the figures on the Tax Return once they have got their mortgage offer or do Accountants actually do this?

We certainly don't!

Accounts should show a true and fair reflection of the business / tax payer. Amending accounts / tax returns for different purposes cannot be a fair reflection can it.

I leave the wild west to the cowboys.

 

[MyAccountantOnline]

Thank you Tony. Good to know.

 

[MyAccountantOnline]

I guess its one good reason to keep paying my huge annual subs to the ACCA

 

[tony84]

Is it the taxpayer that is allegedly changing the figures on the Tax Return once they have got their mortgage offer or do Accountants actually do this?

Im not sure, I would assume its the customers themselves as I cant see many accountants wanting to risk their livelihood to help someone get a mortgage. There will be some dodgy accountants out there I imagine like any trade but the account manager/lenders do not really go into specifics.

If nothing else it gives you accountants a reason to up sell accounts rather than just self assessments.

 

[UK Contractor Accountant]

I have seen some clients changing their pay for 3 months and producing payslips for mortgage purposes and then putting the pay rate back down again.

 

[tony84]

I dont really get many contractor mortgages so im not that up to speed on them but its a risky game - http://www.nhunter.co.uk/ If they get put on that list they are going to struggle to get a mortgage forever more.

Its funny, people dont consider things like that to be fraud as they have every intention of paying it back but technically it is. We get dragged to so many conferences and seminars about this sort of thing its drilled into me now.