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How can an accountant help you get a mortgage?

By 23/05/2023June 21st, 2023No Comments
How an accountant can help get a mortgage

In a world of financial uncertainty, getting a mortgage and running your own business can prove very difficult when buying a property. In this article we consider how can an accountant help you get a mortgage.

Mortgage lenders are keen to make the right decisions when lending to potential customers. When you are self-employed or the director of your own limited company, that risk can become much more complicated.


How can an accountant help me get a mortgage?


Verifying your finances

Having an accountant verify your finances will add an additional level of integrity to the figures presented. Some lenders require an ‘accountant’s report’ to be completed by an accountant on behalf of the borrower to confirm their finances, which will give the lender more confidence when concluding a lending decision. Direct Peak can offer to complete your ‘accountant’s reports’ to help verify your finances to any potential lenders.

Improving your financial position

Having an accountant work with you to obtain a mortgage may help maximise your mortgage borrowing and buying power, helping you to get the best mortgage possible. Mortgage borrowing is largely dependent on your income and affordability – by having an accountant look into your business cash flow, and an in-depth look into your finances will help maximise your borrowing power. Direct Peak offer ‘Growth Reports’, which help give a detailed overview of the business performance, cash flow and overall position of your finances.

Help to find a mortgage specialist.

Having an accountant help you find the right lender by seeking out a specialist mortgage broker or advisor rather than a bank, who will be able to talk to multiple specialist lenders and help find you one that understands the specific needs of a self-employed or company-owner applicant. Direct Peak work with specialist mortgage brokers, who can advise you further on finding the perfect mortgage for your needs.

Looking for an accountant who can help

What other factors can impact me in getting a mortgage?


How long have I been in business?

The longer you have been in business will give you the greater your chance of getting a mortgage, as a solvent business appeals stronger for any lending decisions. Self-employed persons have historically had to wait until they have submitted three years’ tax returns before making a successful mortgage application. However, many lenders are now willing to consider applications from persons at any stage of their business.

Will my credit score impact getting a mortgage?

Having CCJs or even bankruptcy can severely impact obtaining a mortgage. However, there are specialist lenders who are willing to lend despite the higher risks involved. If you are married, in a civil partnership or living with a partner, a joint application may also be worth considering, as the borrowing would be split over the two parties and would lower the risks in lending. It may be worth considering speaking to a mortgage advisor about the options available to you if you have bad credit, as this doesn’t necessarily mean you will be rejected on application.

Does my tax setup affect my affordability?

The most tax-efficient way for an owner-managed business to extract funds from the company would be to receive a smaller salary and rely on company dividends to draw monies from the business. However, it can present your personal income as being low as you are obtaining the mortgage personally rather than through the company. Speaking to your accountant in plenty of time will ensure your salary and dividends are set up in the most favourable way for any future mortgage applications.

Can Direct Peak Accountants help me?

Direct Peak Accountants are on hand to help small business owners prepare and present their financial statements with a view to obtaining a mortgage. We can work with you from the very outset, from helping to save for a deposit to getting ready to make the application. Direct Peak can handle both your business and personal finances to ensure you get the best mortgage to suit your needs, so please get in contact with us today!

Steve Marshall
Steve Marshall
The whole team at Direct Peak have been amazing to work with. Everything we have been looking for from an accountant. Thank you from Acoustic Associates
Luke Tyler
Luke Tyler
The Direct Peak team are exceptional in all they do. They demystify my questions on accounting, offer clear, sound advice, and help me to make informed decisions about my business.
Don Wiid
Don Wiid
Karl Newman and his team help us with our Xero accounts system, making sure it is accurate and up to date. The real value though, is Karl's experience as a management accountant, providing indispensable advice on a monthly basis to ensure we keep growing.
Craig Sawyer
Craig Sawyer
Direct Peak are the perfect accountants for me. Always helpful and friendly. They take away any of my accountancy headaches which allows me the time to focus on my business. Would highly recommend them and do to any business owners I can. Thank you all !
Kelsey Brace
Kelsey Brace
I've worked with Karl & Direct Peak for years. They have always provided great service and advice. Highly recommeded!
Sana Hanassi-Savari
Sana Hanassi-Savari
Great service, I would highly recommend them. The team are friendly, always around to help and very knowledgable.
Simply Antivirus
Simply Antivirus
Direct Peak was the right choice for us. Outstanding friendly service. The team are highly knowledgeable regarding tax and financial matters, and they have been an asset to the running of our business. Very approachable and have an answer to all my questions. Highly recommend them! Very well done guys!
catherine Johnson
catherine Johnson
I recently changed my Accounting to Direct Peak, mainly due to Karls brilliant support with advice regarding making Tax Digital and around my business growth intentions. Having run my own small business and being with my previous accountant for 13 years, I have been SUPER impressed with every aspect of the move - the advice, the support, and mostly the friendliness of the team and their willingness to want to help. Eve has been so amazing at supporting me to make the transition to Digital VAT returns - I cannot recommend Karl and his team at Direct Peak highly enough - Thanks Guys!
Peter Baker
Peter Baker
Karl has been outstandingly patient and generous with his time. I cannot recommended Karl enough. He has helped massively in starting up my own company.
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Dedicated Contact

Direct Peak provides a dedicated business tax accountant, who will prepare your annual accounts and tax returns. They will be on hand to answer any tax queries you have.

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Tax Efficient

Your business tax accountant will ensure that the company is set up in the most tax-efficient way and that you are claiming for all the correct expenses to maximise your earnings.

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Quick Turnaround

We aim to turn around the annual accounts and tax returns quickly to give you visibility of your tax bill well in advance of it being due.

How can an accountant help you get a mortgage if your self employed?

An accountant can play a crucial role in helping you secure a mortgage when you are self-employed. Here are several ways an accountant can assist you in this process:

  1. Financial Documentation: Lenders typically require detailed financial records when evaluating mortgage applications. An accountant can ensure that your financial statements, such as profit and loss statements, balance sheets, and tax returns, are accurate, complete, and properly prepared to meet the lender’s requirements.
  2. Tax Planning and Optimisation: Self-employed individuals often have complex tax situations. An accountant can help you navigate the tax landscape and identify legitimate deductions and credits that can reduce your taxable income. By optimising your tax strategy, your accountant can help improve your financial picture, making you a more attractive borrower to lenders.
  3. Financial Analysis: An accountant can review your financial statements and analyse your business’s financial health. This assessment can help you understand your current financial position, identify areas for improvement, and make any necessary adjustments to increase your chances of mortgage approval.
  4. Income Verification: When you are self-employed, verifying your income can be more challenging compared to those with a traditional job. Accountants can help by providing a professional opinion letter or income verification letter, which confirms your income based on your financial records. This documentation adds credibility to your income claims and can be crucial in demonstrating your ability to repay the mortgage.
  5. Business Structure and Legal Compliance: An accountant can help you determine the optimal legal structure for your business, such as a sole proprietorship, partnership, or limited liability company (LLC). They can advise you on compliance matters and ensure that your business is in good standing with the relevant authorities. Demonstrating a stable and well-managed business can positively impact your mortgage application.
  6. Financial Forecasting: If you are a self-employed individual with irregular income or a seasonal business, an accountant can assist in preparing financial forecasts that demonstrate your ability to meet mortgage payments consistently. By projecting your future income based on historical data and industry trends, you can provide lenders with a clearer picture of your financial stability.

Remember, while an accountant can provide valuable assistance, ultimately, it’s the lender who determines whether you qualify for a mortgage. It’s essential to maintain open communication with both your accountant and the lender throughout the application process to address any questions or concerns promptly.