Mortgage - Underwriter checks on SA302 accounting docs

cyberclubber

HI All,

me and my wife are on a stage where they are checking all documents. We supplied everything as requested by the Broker , but now we are asked to provide Accountants Certificate because HMRC issued SA302 are not good enough (broker did not know that i guess)
This is what they said -
Unfortunately we do not accept SA302's in isolation. Please see attached

Not that i understand what they mean by In Isolation-

So now we contacted my wife's accountant and got this form completed, but our accountant is not accredited by Leeds Building Society rules, as accountant is a Tax advisor ATT. what else can we provide then to prove income for last year ? HMRC docs was given , accountant that we have certificate was given,,, what else ? please help as this could be a dadlock for her to prove her income. while i am on a Full time employment,.

Question 2.

now they are asking documents and we see they did aa full credit check, should we expect more documents to be requested or they would have aksed all by now.

cheers all

Thrugelmir

They will require a certificate issued by a Chartered Accountant or somebody of similar ilk, i.e. a professional person.

cyberclubber

Thrugelmir wrote: »

They will require a certificate issued by a Chartered Accountant or somebody of similar ilk, i.e. a professional person.

When you say Professional , our accountant Is a member of ATT which is same as AAT but for Tax experts. they are acredited by HMRC to act on behalf , so this means i have to get a new accountant and do everything again for last 3 years accounts while already on decision ?

kingstreet

Leeds criteria;-

Self Employed (including Sole Traders & Partnerships): Where a business has traded for at least 3 years, the application should be supported by accounts or a fully completed Accountants Certificate for the last 3 years. Where a business has traded for less than 3 years, a minimum of 2 years accounts are required.

The Society will look to support self-employed individuals, where the business is prospering. However, the Society will also consider applications where profit reduces by more than 10% in the 2nd year, and subsequently recovers to within 10% of the 1st year in year 3.

The Society does not support applications where net profits show a deteriorating trend such that the most recent profits are more than 10% lower than the first year submitted.

The affordability assessment will be based on the average profitability over the period for which financial accounts are provided.

Accounts should be prepared by a qualified Accountant and, if considered necessary by the Underwriter, proof of the continuing existence of the business may be requested.

Accounts or accountants certificate are acceptable evidence of earnings, where signed by a qualified accountant from the list below:

• Institute of Chartered Accountants in England & Wales.
• Institute of Chartered Accountants of Scotland.
• Institute of Chartered Accountants in Ireland (Chartered Accountants Ireland).
• Institute of Financial Accountants.
• Association of Accounting Technicians.
• Association of Authorised Public Accountants.
• Association of Chartered Certified Accountants.
• Association of International Accountants.
• Certified Public Accountants Association.
• Chartered Institute of Management Accountants.
• Chartered Institute of Public Finance & Accountancy.
• Chartered Institute of Taxation.

If the accounts or accountant’s certificate are not signed by a qualified person from the above list, then the applicant will also need to provide an SA302.

Where the accounts include exceptional items, providing additional information on these events will help expedite the application and reduce the probability of additional questions.

http://www.leedsbuildingsociety.co.uk/_resources/pdfs/intermediaries-pdfs/mortgage-lending-criteria-and-guidance.pdf

Thrugelmir

cyberclubber wrote: »

our accountant Is a member of ATT which is same as AAT but for Tax experts.

Not good enough.

cyberclubber

Thrugelmir wrote: »

Not good enough.

But as LBS web site says:
If the accounts or accountant’s certificate are not signed by a qualified person from the above list, then the applicant will also need to provide an SA302.

SA302s were provided initially and then they said:
Unfortunately we do not accept SA302's in isolation

So i guess now than have SA302s for 3 years plus this certificate , should be enough .?

Thrugelmir

cyberclubber wrote: »

But as LBS web site says:
If the accounts or accountant’s certificate are not signed by a qualified person from the above list, then the applicant will also need to provide an SA302.

SA302s were provided initially and then they said:
Unfortunately we do not accept SA302's in isolation

So i guess now than have SA302s for 3 years plus this certificate , should be enough .?

Underwriters can ask for what ever they want in order to satisfy themselves.