Fox Davidson are a professional mortgage brokerage specialising in mortgages for accountants. We work with members of the ICAEW to secure mortgages on UK property.
We provide insightful, expert mortgage advice and can secure increased loan-to-values and income multiples for accounting professionals. We work with mortgage lenders that offer exclusive rates to professionals, including accountants.
Mortgages For Accountants: Key Criteria
- 1 year’s accounts
- Recent change from sole trader or LLP to Incorporation
- Recent change to partner status (with small % of the LLP)
- 95% loan to value
- Up to 6 x income
- Utilisation of retained profits
- Ability to use the latest years income in isolation (rather than average over 2 or 3 years)
- Short term contractors – Annualisation of the day rate
Frequently Asked Questions
Can Accountants Get A Higher Mortgage?
Accountants are classed as professionals and, as such, can secure higher mortgages and preferential rates from some UK mortgage lenders. Accountants can expect to achieve up to 6 x income. Lenders may also be able to use projected earnings for the right clients.
How Much Can You Borrow With A Professional Mortgage?
A professional mortgage will allow for income multiples up to 6 x UK taxable income for a professional. Professional occupations that qualify include accountants and those with accounting qualifications working in an accounting role.
Are Professional Mortgages Worth It?
Professional mortgages allow applicants to secure preferential rates, increased loan-to-values and increased income multiples. Professional mortgages are worth exploring as they may be the difference between being able to buy a property or not.
Can I Use Retained Profits To Get A Mortgage?
Some UK mortgage lenders will use retained profits in their calculations. It is possible for some lenders to utilise gross profit before tax, while many more will use profit after tax. This is beneficial for someone who does not draw all their income in dividends.
For large loans, private banks can be more flexible and will use retained profits from previous years. Private banks will also work from projections for accountants that are still in the draft stage.
Are Mortgage Rates Higher For Self-Employed Professionals?
Mortgage rates are not higher for the self-employed. There is no difference between the rates banks offer employed and self-employed professionals. The way income is treated is the only difference.
Can I Get A Mortgage With 1 year’s Self-Employment?
If you are self-employed, it is possible to secure a mortgage with just one year’s proof of income.
UK mortgage lenders will also look at clients who have recently incorporated their business or moved from employed to partnership status within the same company.
Also Read: How To Get A Professional Mortgage
To discuss mortgages for accountants and members of the ICAEW, please contact Fox Davidson using the enquiry form above or by email firstname.lastname@example.org. You can also call us on 01179 897950.