What Documentation do I need when applying for a mortgage?

When applying for a mortgage lenders will need to see two things. Also, RECORD KEEPING IS ESSENTIAL...

1. DEPOSIT

A deposit for the property this can be as little as 5% but the bigger the deposit the better the rate, and proof that you can afford the mortgage over the selected term.

The deposit can come from various sources IE savings, Gift from Close relatives (Parents/Grand Parents) or in some case equity within the property ( you would need to seek advice before committing to purchase the property).

2. INCOME

Lender will want you to be able to prove that you can afford the mortgage in every case and they do that by looking at your income whether you are employed or self employed.

They will then look at what credit commitments you have already and will usually deduct these from your income to establish affordability.

It is vitally important that when you apply for a mortgage that you can prove your income.

Typically what lenders will look for is the following:

  • Proof of Identification typically Passport or Driving Licence
  • Proof of residency of current address
  • Last three years address history
  • Payslips (usually last three if paid monthly but could be more dependent on how you are paid)
  • If Self Employed SA 302’s and Tax overviews (These can be obtained by you accountant or directly from HMRC).
  • Bank statements
  • Mortgage Statement if already a homeowner.
  • Details of existing credit commitments (which could include credit card statements, Loan Agreements)
  • Or any other document that they feel is necessary.

Therefore it is vitally important that when applying for a mortgage or any other loan for that matter you are able to prove you are the person(s) applying and that you can afford the loan.

You will need to be able to provide to the Bank,Building Society or Specialist lender the original documents.

If using a broker you can usually provide the original documents to them and they will forward certified copies to the lender.

Record keeping is essential and throwing away important documents could result in a long delay in applying for a mortgage or in some cases refusal.

So if you are at the point of thinking about applying for your first mortgage or are thinking about buying your next property ensure that you have got all the correct documentation as the lenders will want to see them.