Cover letter to bank or building society
The covering letter to go with your client’s accounts that you have prepared to be sent, in
support of the client’s mortgage application or loan, to the client’s bank or building society.
Legal notice
AAT has provided the following sample bank/building society letter on the understanding that
you will select, adopt or amend the contents in a way, which you deem to best suit your
needs.
AAT cannot provide any assurance that this sample bank/building society letter will be
suitable for your particular needs or those with whom you deal and neither AAT nor any AAT
employee will be liable on any basis for the consequences of your using them.
Introduction and explanation
Most banks and building societies recognise members of AAT for the purpose of preparing
their client’s accounts in support of a mortgage application.
So from time to time your client may ask you, as their accountant, to prepare accounts or
information to be sent to their bank or building society (mortgage lender) in support of their
mortgage application or loan.
There should be no difficulty in you undertaking this work.
However, in the event that your client is unable to make their repayments the mortgage lender
may look to recover their loss from you, the client’s accountant.
Generally, the accountant has no duty of care to third parties, in this case the mortgage
lender. However, a duty of care may arise if for example the accountant receives a payment
from the mortgage lender for the services that the accountant has provided on behalf of his
client, and you should consider consulting a solicitor if you are in any doubt.
You may want to make it very clear in your covering to the mortgage lender that you do not
and will not accept any liability. While the following sample letter is not guaranteed to stop a
mortgage lender trying to recover their losses from you, it should deter them and put them on
notice that you will rebut any such claim.
Solicitor
You should consider consulting a solicitor if you are unsure of the meaning of any of the terms
or conditions in the sample covering letter to the bank or building society.
Sample covering letter to the bank or building society
{insert your business name, if you are not using letterhead paper}
{insert your business address, if you are not using letterhead paper}
{insert the name of the bank or building society}
{insert the address of the bank or building society}
{insert the date}
Your reference: {insert the bank or building society reference number if supplied}
Our reference: {insert your reference number}
Dear {insert either “Sir/Madam” or title and name of the person at the bank or building society}
{insert in bold and capitals the subject of your letter, for example “ACCOUNTS OF MR J
SMITH”}
Please find enclosed the {insert one more of the following items as appropriate: financial
accounts, management accounts, p&l a/c, balance sheet, cash forecast, budgets, business
plan…. etc} of our client, {insert the title and name of client}.
These un-audited accounts have been prepared on the basis of the information and
explanations supplied by our client, {insert the title and name of your client}. No independent
checks or verifications of the information enclosed have been undertaken by {insert your
business name} or by any member of its staff.
OR
These accounts have been prepared on the basis of the information and explanations
supplied by our client, {insert the title and name of your client} and have been audited by
{insert the name of the Registered Auditor} of {insert the address of the Registered Auditor}.
The information enclosed has been provided at the request of our client and is provided on
the understanding that it is the sole responsibility of the mortgage lender {or loan company} to
satisfy themselves of our client’s, {insert the title and name of your client}, ability to enter into
and ability to repay any mortgage or loan. Neither {insert your business name} nor any
member of its staff will be responsible for any financial loss or damage or consequential
financial loss or damage resulting from any party placing reliance on the information supplied.
Yours {insert either “faithfully” or “sincerely” as appropriate}
{insert your signature}
{type your name}
Note: the following line is optional and is only appropriate if you are trading through a
partnership, limited company, LLP etc.
Signed for and on behalf of {insert business name}