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Information for mortgage applications - charge?

We haven't so far...

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We have always passed on SA302's, Tax overviews etc free of charge, but in recent months for some clients in particular, we are being asked for this for husband and wife, then a reference ( both)...this may take in excess of 30mins.

Do you charge for this service, and if so how much?

Replies (18)

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By Wanderer
19th Feb 2021 10:30

Charged, at normal charge out rates.

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By johnt27
19th Feb 2021 10:41

Yes, usually starting at £150 + VAT

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Replying to johnt27:
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By murphy1
19th Feb 2021 10:45

Thanks, appreciated.

I am starting to realise I need to charge more often for things that I do as part of our 'customer service'

Feels more and more like we are having the proverbial taken out of us, and the more we do, the more that is expected

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Replying to murphy1:
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By Mr_awol
19th Feb 2021 11:16

Do you actually 'need to' charge more often for stuff like this? Are you doing (too) much for free, or do you feel that you've missed out on an opportunity to fleece clients that others would have taken?

Just because John charges £150 + VAT (presumably for a reference, not just an SA302) doesn't mean we all should. It depends on how long he would spend on the work he charges that for.

I normally ping over SA302 and overviews for free because it takes less time to do it than to bill for it. I might charge £50 to £100 for a reference. I might charge £250 or more if I have been involved in discussions with the lender, provided projections, etc.

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By Paul Crowley
19th Feb 2021 10:55

Started this year

£100 if any more than just the Tax comp and TYO

Will probably just do it for all in future as it is trivial with all the other money floating about

Getting so many more as BTL loans are quite often just a 2 year agreement

It will also sniff out the most price sensitive
Had one go off the deep end as his wife and then his paid advisor thought it should all be free, no matter how many emails and variations
We no longer act for that person

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By mbee1
19th Feb 2021 10:54

No charge here. Tax comps from software are already there digitally and it's only a few clicks to get a TYO. Can be done whilst waiting for the kettle to boil.

Why does it take you 30 minutes?

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Replying to mbee1:
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By Paul Crowley
19th Feb 2021 10:57

Not always just that
Do not yet charge for that

I charge when the advisors involved choose to waste my time

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Kitten
By Hazel Accounts
19th Feb 2021 11:16

I'm fairly sure this has come up before and that ICAEW recommend you do NOT charge for a reference? (I'm not ICAEW).
If I remember correctly it's to do with possibly creating an implied contract, you don't want to be liable for mortgage lenders decisions if there's a default down the line and they try and claim they relied on your info. Any "reference" should have a disclaimer.

As for just providing copy SA302s and tax years, I don't charge but doesn't take long and I don't have that many requests - guess you could though.

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Replying to Hazel Accounts:
By ireallyshouldknowthisbut
19th Feb 2021 16:51

ICAEW are clear you cant charge.

I never would want to. SA302's take no time to do.

References are very hit and miss and it would be awkward to charge for a reference which did not give rise to lending due to your not being able to answer some daft question or other. eg "predict this years incomes." I mean, really?

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Scooby
By gainsborough
19th Feb 2021 11:22

I remember seeing that point raised by ICAEW.

CIOT are a little more relaxed and say that it is reasonable to make a charge but they also say that the fee should be agreed up front and the service should be covered in the Letter of Engagement and PII.

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Replying to gainsborough:
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By Paul Crowley
19th Feb 2021 12:12

ICAEW also say that we should only report facts and not give any opinion.
Written in a different time
Back then renewal of BTL every two years did not happen
There were no time wasting intermediaries
Client applied to lender and lender asked for a reference REALLY clearly defined.
Lender would say what was being lent
And wrote to the accountant
Difficult to remember last time I had ANY contact with a lender

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Replying to Paul Crowley:
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By murphy1
19th Feb 2021 12:45

'Time wasting intermediaries' is true.

Sent SA302's and tax overviews. Been asked for a Santander reference this morning, completed 2 hours ago, and now being asked to complete one for a different lender.

Client is obviously anxious, but the time at our end if fairly mounting up

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Replying to murphy1:
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By Paul Crowley
19th Feb 2021 16:30

I wonder if we both had the same intermediary as my earlier post was that scenario

You can lose half a day with intermediary insisting on using client as piggy in the middle and phone calls between emails that contradict each other

It will follow up with a request that you confirm that the 60 year old will trade for 10 years and in a reference saying to whom it concerns............

NONE of the rubbish requests that I charge for were in the mind set when ICAEW suggested no fee

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By meadowsaw227
19th Feb 2021 13:44

Have never charged for this service and probably never will .

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Replying to meadowsaw227:
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By murphy1
19th Feb 2021 13:55

Think it is apparent that if I charge much more throughout the year then I can do 4 references for one client free.

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A Putey FACA
By Arthur Putey
19th Feb 2021 14:01

SA302s depends on the client, FOC or £50 (they usually want 3 years worth), I always send them to the client not to mortgage advisers.

Where the request comes direct from a lender I don't chanrge for completing the form

I never give references nor answer any subjective or forward looking questions.

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By Moonbeam
19th Feb 2021 15:50

All of us do things a little differently. But I increasingly charge extra for egVAT registration and subsequent training, mortgage applications and anything not envisaged in the LOE. What I charge depends on how much time I think it will take. I still don't think I'm charging enough extra for the aggravation.

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Replying to Moonbeam:
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By murphy1
19th Feb 2021 16:09

Aggravation it is indeed! Some days are fine, but today for example I haven’t done any ‘normal’ chargeable work- references, visa application info required, client calling selling his business trying to deal with it himself but expects to call me every day...!

Increasing realising that it can’t go on - I’m being taken for a fool quite frankly.

This time last year I was about to revise fees etc, but didn’t.

It is definitely happening no, albeit hard not to those severely affected by Covid.

We offer Registered office for free- no more either!!

I’ve seriously had enough of the hours, stress etc. It not until I have actually sat back and considered a number of fees and what we do for them, and their expectations for that fee!! We have a Fixed Fee agreement with every client for compliance work, but then don’t normally charge much else.

When I started a number of years ago, someone on here had painstakingly undertaken a survey of fees- would be interesting to see comparison now.

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