The covering letter to go with your clients accounts that you have prepared to be sent, in support of

the clients mortgage application or loan, to the clients bank or building society.

Cover letter to 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
clients 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 clients 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.

AAT is a registered charity. No. 1050724

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 clients, {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}

AAT is a registered charity. No. 1050724

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}

AAT is a registered charity. No. 1050724