Do Accountants Get Better Mortgages?

If you’re an accountant in the UK and are looking into buying a home or investing in property,  you need to know how your profession can open up the doorway to competitive interest rates and enhanced borrowing amounts.

As an accountant – we know that you’re already good with numbers –  but when it comes to the world of mortgages, there are probably a few questions you have to ask:

Do mortgages for accountants come with any perks? Will being an accountant get me a better deal? How can I access the best mortgage deals for accountants?

In this guide, we answer all of your questions as we explore exactly what you can expect, the difficulties and benefits of mortgages for accountants, and most importantly, how you can access the most competitive mortgage rates. Let’s jump in.

How Difficult Is It for Accountants to Get a Mortgage?

When it comes to assessing the ‘difficulty’ of securing a mortgage, lenders will usually have one primary question: Are you a borrower who can reliably repay your mortgage loan?

Fortunately, accounts are often associated with both high and stable incomes and consequently, securing a mortgage for an accountant is generally a lot easier than for many other professions.

In short: Lenders see the profession of ‘accountant’ as a low risk and reliable borrower.

With that being said, there are still a few things to keep in mind. For example, some lenders will need additional proof of your income – especially if you’re a self-employed accountant – and you’re likely to be required to present business accounts, SA302s, and an accountant certificate for mortgage applications.

In addition to this, you will still need to meet the standard mortgage lending criteria of your chosen lender. This will include the ‘usual suspects’ of having an affordability, credit history, and deposit size assessment.

What Are the Benefits of Mortgage for Accountants?

As the profession demonstrates financial expertise alongside both a high earning income with a stable career path, there are a variety of benefits for accountants when it comes to securing a mortgage.

Perceived as a low-risk borrower, accountants can expect to access to three main benefits:

• Higher borrowing limits: With a strong career path and strong income prospects, lenders will generally offer you an enhanced borrowing multiplier.
• Better mortgage rates: Due to the low risk, lenders will often provide highly competitive mortgage rates.
• Specialist mortgage products: There are some specialist mortgage lenders that will offer exclusive and tailored mortgages for professionals. This is particularly beneficial for self-employed accountants who can access lenders with a more flexible criteria that understands the structure of self-employed income.

It is important to note that these benefits specifically help qualified accountants. As such, chartered accountants and other qualified organisations alike, will all add an extra layer of confidence for lenders.

Higher Borrowing Capacity

As we touched on before, one of the biggest advantages accountants will have when securing a mortgage is their potential to access lenders that offer enhanced borrowing power.

Benefiting from a high income and stable career, lenders will often view applications from accountants as low-risk, granting access to the benefit of an increased borrowing capacity.

For example: While the standard borrowing multiplier in the UK may be 4x – 5x your income, accountants may be able to secure a lender that offers 5x – 6x your annual income. This can greatly enhance your overall borrowing amount and help you secure properties of a higher value.

It is crucial to make sure that your chosen lender includes all of your income in your affordability assessment. For many accountants – particularly self-employed accountants – your basic salary might not be your only income.

For example, we have worked with accountants that have multiple income channels that include: bonuses, profit shares, dividends, teaching, and publishing, all of which can boost your overall earnings.

Ensuring that you choose a lender who understands the complexities of multiple incomes is vital in securing a mortgage that truly reflects your affordability. With whole-of-market access, Boon Brokers works with high-street and specialist lenders alike so that we can find the best lender for your needs.

Better Mortgage Interest Rates

Similarly to the reasons behind an increased borrowing power, accountants will often have access to better mortgage interest rates due to their strong financial profile and are viewed as a low-risk borrower.

With that being said, the main factors that will influence your mortgage interest rate will still be the size of your deposit and your creditworthiness.

Saving for a larger deposit and ensuring that your credit file is all in order are always best practices if you’re looking to secure the best and most competitive interest rates.

Property Investments for Accountants

With the accountant profession offering a strong stability and high income, many qualified accountants explore property investment as a way to increase and diversify their income.

Naturally, whether it’s a buy-to-let, holiday let, or second home, your financial background will make you a great candidate for investment lending.

As an established accountant, you’ll most likely already know how to manage returns, risks, and how to best structure your finance, allowing you to leverage favourable mortgage terms.

Working with a trusted mortgage broker – like Boon Brokers – can help you find a specialist lender that matches your specific mortgage needs. With whole-of-market access, our dedicated brokers can compare mortgage products across the entire market to find a mortgage that is tailored to your requirements.

Can Self-Employed Accountants Get a Mortgage?

The short answer: Yes, self-employed accountants have access to the same benefits and advantages as employed accountants when it comes to securing a mortgage. However, they might face a few extra hurdles.

The primary difference for self-employed accountants is providing proof of a steady and reliable income.

Lenders want to see evidence that you will be able to safely repay any mortgage loan. As such, most lenders will ask for two to three years of business accounts and tax returns (SA302s) to establish a clear insight into your annual income.

For self-employed accountants, the key to success is preparation.

Working with a trusted mortgage broker, who understands the different structures of mortgages for self-employed professionals, can help you present your finances clearly and confidently to your chosen lender.

Can Trainee or Newly Qualified Accountants Get a Mortgage?

Yes, both trainee and newly qualified accountants can be eligible for a mortgage.

What can be most beneficial for newly qualified accountants is finding a lender that understands your current career position and your future career path. For example, certain lenders will specifically offer mortgages for newly qualified accountant professionals that offer a flexibility on affordability, working off your future income.

In particular, there are some specialist lenders who will have more of an understanding on the career trajectory of an accountant, and are much more likely to accommodate your financial profile as a borrower who will progress quickly and achieve higher earning potential sooner.

If you’re a newly qualified accountant who has received notice or a letter that confirms a rise in your salary to reflect your newly qualified status, then some lenders will accept a job offer letter or employment contract as your new salary. This can help with your affordability and makes things much easier if you haven’t yet received your first payslip.

How Much Can an Accountant Borrow?

The exact amount you can borrow as an accountant will wholly depend on your income, outgoings, credit file, and your chosen lender.

With that being said, accountants working in the UK will typically be able to borrow up to 5 or 6 times their annual salary. With this in mind, let’s take a look at some mortgage calculation examples of borrowing power:

• A newly qualified accountant earning £40,000 might be able to borrow between £180,000 and £240,000.
• A Senior Accountant earning £60,000 might be able to borrow between £270,000 and £360,000
• A self-employed accountant earning £80,000 in post-tax profits might qualify for £400,000 to £480,000

It is important to note that these figures are based on the most recent recorded earnings of accountants in the UK. The exact amount that you will be able to borrow will depend on your financial profile, and will likely change depending on your chosen lender.

For accountants that are well established and have a long history of consistent earnings, lenders will likely look on your application favourably, lending up to the higher brackets of 6 times your income.

Crucially, every lender’s mortgage lending criteria is different. That’s why working with a trusted mortgage broker who has whole-of-market access can help you compare lenders and find the best mortgage deal for you.

Speak to Our Mortgage Brokers

At Boon Brokers, we specialise in helping accountants find the best mortgage deal.

Whether you’re a chartered accountant, a self-employed accountant, or are just starting out in your career, our dedicated mortgage brokers can help match you with the right lender.

We can guide you through the entire process, from start to finish, removing all the jargon and hassle of the mortgage world – handling the paperwork so you don’t have to.

Contact Boon Brokers today for fee-free expert advice.