Mortgage and audited accounts

Mortgage and audited accounts

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A client, sole director of a limited company, applying jointly for mortgage personally, not for or through the company.. The bank phoned me this morning to ask for another copy of the accounts saying 'audited' and also asking for SA302.

The company makes use of the audit exemption and it is cleared stated on the accounts. I am not a registered auditor and showing the accounts as audited without the audit report will also create an issue, and providing an auditor's report will violate the law.

 In your view, how can I now best address this, as a second opinion?

Replies (11)

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RLI
By lionofludesch
02nd Jun 2015 15:32

Ignorant

The bank are clearly ignorant of current legislation.  Doing a proper audit on those accounts would - more than likely - cost a few grand just to fill in the forms, without thinking about the work to be done on the accounts themselves.  Have a chat with your friendly local bank manager and educate him.   Is it still that Barclays' bloke in the cupboard ?  He was around when we were still auditing.......

Thirty years since we stopped auditing accounts - bring the bank into the 21st century. (Or a bit closer to the end of the last one, perhaps, if you can't manage that.)

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By johngroganjga
02nd Jun 2015 15:07

Sorry mis-read

.

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By Craigie_Bhoy
02nd Jun 2015 15:06

Confused

Maybe this is the norm, but can the bank even request a copy of the accounts?

I've been out the practice loop for many years now, but surely the SA302 would give the bank all they needed without the need for accounts, audited or otherwise.

Pretty sure my multinational employer wouldnt provide its accounts for my loan/mortgage application - although slightly different I agree!

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By johngroganjga
02nd Jun 2015 15:10

Yes they are very wise to request a copy of the accounts, rather than relying on SA302s, as the accounts show the actual earnings available to the shareholder, whereas the SA302 only shows the shareholder's taxable income.

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By Craigie_Bhoy
02nd Jun 2015 15:25

Thanks John

Whilst I can see the obvious benefit to the lender in seeing the accounts, I was slightly surprised the lender was switched on enough to ask.

Thanks again.

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By Manchester_man
02nd Jun 2015 17:24

As mentioned before, I opened a new bank account up with a high street bank beginning with B, around a year or two ago, and the 'Business Manager' told me "if you work for yourself you get drawings not salary" - I reminded her that we are a limited company and she replied "it's only if you, like, go to work for someone else that you get paid a salary".

Also, she didn't understand what dividends were.

It was highly disturbing. Perhaps you dealt with a similarly under-trained 'manager'.

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By Wanderer
02nd Jun 2015 19:33

Don't bother talking to the bank & trying to 'educate' them as suggested above.

Just send them accounts with a standard accountant's certificate on. That, in my experience, is all they want. They just don't understand the terminology.

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By johngroganjga
02nd Jun 2015 19:57

I think they already have the accounts. The request, we are told, is for another copy of them with the word "audited" added to them.

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By Wanderer
02nd Jun 2015 20:08

OP doesn't mention certificate

The OP doesn't mention that he has already sent certificated accounts. He just says that the company takes advantage of audit exemption. Good chance the bank already have accounts without an accountant's certificate on.

Been here many times, Audited accounts requested, certificated accounts sent, mortgage granted.

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By jvenegas16
02nd Jun 2015 22:10

Thank you everyone for your contribution. The accounts include the accountants' report. Are we referring to the same thing?

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Replying to tom123:
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By Roland195
03rd Jun 2015 10:59

Yes

jvenegas16 wrote:

Thank you everyone for your contribution. The accounts include the accountants' report. Are we referring to the same thing?

My experience is the same as the others here in that when the bank or the like say they want audited accounts they actually mean the accounts prepared by the accountant with a certificate and either do not understand or care about the difference.

As you indicate the bank already have the accounts with report in this case, it does indicate they are requesting actual audited accounts which would be deeply worrying.

 

 

 

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