Mortgage References – Let’s stick to the Facts

Generally mortgage lenders will accept references from


Accountants are constantly asked to give income and mortgage references, factually reporting filed information is fine but why ask accountants to forecast the future or state if the client can afford the payments, no accountant should be asked these questions!

under the rules of the Institute of Chartered Accountants for England and Wales (ICAEW), the ICAEW specifically precludes firms from providing anything except factual information in response to such requests. Firms are also restricted in relation to provision of information of this kind by our public indemnity insurers. This is because of the risk to the firm of the information being used to support a lending decision, and the potential for us to be contractually obligated if the lending provided is not subsequently repaid. This is also the reason that reference requests are not charged for by ICAEW member firms.

Accountants who think they can do references as a one off for clients they don’t act for need to beware, they could be disciplined, back in 2014 ICAEW disciplined and fined one of their members £3,500 for a reference prepared in this way

No one knows your business better than you do, so why don’t mortgage providers just ask the their client to give the forecast? why ask the accountant? We can’t be held responsible for the future of our clients!

Let’s stick to the facts!




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