< p> 

Bob the Broker’s Blog: Why it’s so hard to count on the accountant

Is it a Solicitor? Mortgage broker? IFA? Is it a plane? No. What happens when accountants multitask... An accountant has tested my patience this week; one of those wonderful learned professionals of dodgy attire. Picture this: who is most likely to wear baggy, green corduroy trousers and a checked tweed jacket? Mortgage brokers, solicitors, or accountants? OK, it was a bit easy I suppose, God bless their little green and blue socks. So why have my hackles been raised with the old number crunchers? Well this is my gripe, set in motion recently when a new client came to my practice. A lovely old lady and her chiropodist husband approached me for help – they’re at their wits end – worried out of their minds with their debts. They are sat comfortably in a successful business with good accounts, what should be plenty of net income, and the holy grail of our dreams, yes the business premises is unencumbered, all that lovely equity for me to get my mitts on. The converted Victorian property in the leafy suburbs of the Steel city has had a recent value of £165,000 confirmed, (I can hear all you Londoners cheekily thinking, what's that, a garden shed?) But, unfortunately for this lovely couple they have staggering unsecured debts totalling £118,000. Their dream would be to pay the lot off, and hopefully reduce the £2,600 monthly bill to service the debts. Failing that ideal target, then they’d like as much as possible to redeem the costly loan and as many of their cards as possible. So armed with my trusty fact find, and verbal assurances of their turnover and net profit figures, I set off to chat to potential lenders and, lo and behold, the High Street said: “Oooh not sure I like that”... But today we brokers aren't beaten that easily. So I got one or two indicative terms, of around the £100,000 figure to start with, and the clients said they were very happy to proceed and let me start the paperwork, with me assuring them that now I know at least 60% LTV is attainable, I'd research thoroughly for more funds for them, but that we'd need the bank statements and accounts as a starting point – as lenders put a lot of emphasis on these items. That was three weeks ago. Now their accountant – one smart Alec who has not lifted a finger for years – whilst their debts were spiralling into the stratosphere, feels that refinancing isn't a good idea. After all, they'll end up paying a lot more, he says, the monthly repayments will be far higher, he tells them, the overall repayments over the whole term will be astronomical, he quips. But still, he would get the latest accounts completed to assist, but he'd like to see an offer letter first – he wasn't even sure it was legal. So this accountant/solicitor/mortgage broker/IFA is stalling to the extent that my client has now given him until today to get the accounts to her. He did say that with the quality of their management accounts it'd be a couple of days job at the most, so there could be light at the end of the tunnel – watch this space.

The thing is, I'm a mortgage broker; if someone wants accounting advice I send them to an accountant, if they want legal advice I direct them to a solicitor, but accountants, no, they are jacks of all trades, there's nowt they don't know. Bit cruel of me really, there will be some incredibly great accountants out there, I just ain't met many.

Contact Bob Havenhand: [email protected]