Applying for a mortgage is usually a straight-forward process which can be sped up by making sure you have all the required documents ahead of your appointment with your mortgage advisor.
First of all, lenders need to be able to assess your affordability by looking at your annual salary and any other income you may receive, whether it’s a second job, benefits, freelancing, bonuses and so on. They also need to know your outgoings, such as credit card payments, loan debts, household bills, childcare, travel and general living expenses – so that they can be confident you’ll be able to pay back the loan they lend.
A credit check is also carried out, to take a look at your financial history and determine whether you’re a reliable borrower. These checks are completed alongside the affordability assessment to decide the amount which you can borrow. If you’re wondering how you can check and/or improve your credit score, read this blog.
For a mortgage advisor to provide a mortgage in principle, they will need certain documents to ascertain that it is accurate. The lender will then request these official documents upon application.
Here’s a list of what they may require from you:
Proof of identity and address:
- UK passport or full UK driving license, with current home address
- Bank statements showing your name and address
- Utility bill dated within the last 3 months
- Council tax statement from the current year
Proof of income and deposit:
- Your last 3 payslips
- Your last 3 bank statements, showing your name and address
- If you’re self-employed, your last 3 years of tax returns and tax year overviews (or however many you do have if it’s less than 3 years’ worth)
- Proof of other types of income, e.g. bonuses and rental income
- Proof of your deposit, i.e bank statement (if your deposit is a gift, you’ll need a letter from the person giving it to you confirming they don’t expect to be repaid)
- If you receive benefits, proof of receiving these
You will also need to provide the lender with your weekly/monthly outgoings, which could include:
- Credit card bills
- Personal loans
- Household bills
- General living costs such as travel and childcare
- Car finance
- Hire purchase agreements
- Student loans
- If you have other properties, i.e. rental properties, you’ll need to provide the mortgage balance, mortgage payment and monthly rental income
Typically, you won’t be asked to post the above documents out, you can scan them or deliver them to the office personally. It is also important to ensure all information on your application form matches the documents you supply.
If you’re seeking advice on applying for a mortgage and unsure where to start, get in touch today on 07834 818805 or email us at firstname.lastname@example.org and we’ll be happy to help.
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