What documents do I need to apply for a Mortgage?

Posted on: June 1, 2022

When you’re considering purchasing a property, it’s natural to find the thought of a mortgage application quite daunting. There are many forms to complete and lots of information that you must provide. However, with our guidance and support if you’re well-prepared, you’ll find the process moves quite smoothly, allowing you to focus on all the other exciting stages of moving home.

When we apply for your mortgage, you’ll need to supply the details of your chosen property’s address as well as the details of your solicitor and estate agent, along with documents that will evidence your identity, your finances and your expenditure.

Here’s a rundown of the documents you’ll need to hand before making your application.

Proving Your Identity

Firstly, you will need to prove who you are! You’ll need to supply documentation to evidence your identity, such as your driving licence with your current address on it or a valid passport. You may also be asked to prove your current residential address. This will usually be in the form of a recent utility bill, or bank statement addressed to you.


Credit Report

A really useful document that you will be asked for is your credit report, this shows your liabilities as well as your history of payments. It really helps to see this and understand what it shows about your financial history, which will be taken into account when recommending the most suitable mortgage. If you are unsure of how to obtain a credit report, or what information this looks into, we have discussed them in more detail as well as how to improve your credit score, in our recent blog.


Financial Documentation

During the process of applying for a mortgage, you’ll need to prove your income so that the lender can determine whether you can afford to borrow the money for your dream home. To do this, you’ll need to supply specific documentation. This may include:

– At least three month’s worth of payslips from your job
– Bank statements going back 3 – 6 months
– Proof of any benefits you receive
– Your P60 form supplied by your employer

If you’re self-employed, you may need to supply some other specific documentation, including:
– Certified accounts from your accountant
– SA302 form (this consists of two documents – a Tax Calculation and a Tax Year overview) and will be needed for the last 1-3 years
– Information to support the income stated on your SA302, for example, business bank statements

If you already have a mortgage we will also ask for a Mortgage Statement.

Your mortgage advisor will give you the exact information required about any other financial documents that need to be provided based on your circumstances.


Evidencing Your Outgoings

When you’re buying a home, as well as providing details on your income, you’ll also need to supply evidence of your regular outgoings and how you choose to spend your money. Your lender will consider these figures when determining whether you can afford your monthly mortgage payment. This contributes towards your affordability checks.

You’ll need to demonstrate the amount you borrow on your credit cards and whether you have any outstanding loans for which you make regular payments. You’ll also need to provide evidence of the amounts you pay for:

– Utility bills
– Council tax
– Insurance policies
– Travel expenses
– Childcare costs
– Other general living expenses such as entertainment

Your mortgage advisor will be able to let you know if you need to supply any further evidence of your outgoings.


Proof Of Deposit

Lenders require evidence to show the source of your deposit. This may be savings statements.

If your deposit is kindly gifted to you by a family member, you may need to get a letter from your donor (person giving the money) to confirm the deposit is an unconditional gift and non-refundable and that they’ll be claiming no interest in the property.


Things To Remember When Supplying Information

It’s essential to always be accurate when completing your application. Don’t just round up the salary you receive, for example. Make sure you use the actual figures quoted on your payslips. Every detail on your application form must match the figures and information on the paperwork you supply as evidence. By ensuring your accuracy in this information, it will help to keep your home move process running smoothly and hopefully without any hiccups.

Please note, if you supply printouts of your current account statement or utility bills, these may not be accepted by your lender. You may be asked to supply original copies or have your documents certified by the utility provider, bank or solicitor. Your lender should clarify this beforehand.


Getting Our Professional Advice

The documentation outlined above represents the basics that you are likely to be asked to supply when making your mortgage application. Some lenders could ask you to provide more or different paperwork. Like always, at Mindful Mortgages, we are here to guide you through your dream home process, step by step and ensure you know what you need to provide and when. We have a number of guides and helpful extras providing extensive information and resources for each of the stages, as well as our team providing you ongoing support, to ensure you are heading through this journey with clarity.

A member of our friendly team is always on hand to chat and help wherever we can. You can book a call here to arrange a chat with one of our advisers.

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