What Documents Do I Need When Applying For A Mortgage?

Mortgage Paperwork

Applying for a mortgage is a daunting prospect but if you are feeling nervous, just consider the number of people who successfully apply for a mortgage. Yes, it is expensive and yes, it will create considerable financial pressure for you but with planning and consideration, you can make applying for a mortgage much easier.

You will know the importance of having a good deposit, buy you also need to be prepared for the administrative aspects. Mortgage lenders carry out a lot of checks into mortgage applicants. The more information you can provide them with to state that your incomes and outgoings are as claimed, the more straightforward the mortgage application process will be.

You should collect the documents you will be asked for during the process. Some of the documents you may be asked for include:

  • Three months’ worth of payslips
  • A passport or driving licence to prove your identity
  • A P60 from your employer
  • Bank statements for your current account which cover a three to six-month period
  • Utility bills
  • Documents relating to benefits received

If you are self-employed, you will need to provide more documentation. You will find it is beneficial to produce two to three years accounts from an accountant relating to your self-employment earnings and financial activities.

Self-employed people need to provide more information

Self-employed people should also look to provide the SA302 tax return form, and this document is also important if you earn income from a range of sources. It can be helpful to provide documents which corroborate the information in these accounts and forms.

It is likely to be more difficult for self-employed people to obtain a mortgage, but it isn’t impossible. If self-employed people understand they are likely to be under greater scrutiny, and that they need to provide proof of all income, they should still be able to obtain a mortgage.

It is essential that you are accurate. The information that you include in mortgage application forms should match what the documents you provide. This means you should collate all these documents when you complete the application, not when you attend a meeting with mortgage lender.

Other details you should be able to provide include your property address, the address of the home you wish to buy and contact details for your estate agent and solicitor. It may be that the mortgage lender asks for further information or documents so if they do, don’t consider this to be an exhaustive list, comply with all requests.

While there is an increasing movement to switch to online accounts and statements, be aware that some lenders will insist on physical copies of your accounts and information. Wherever you can, provide paper documents.

Be prepared to share details about our outgoings

It is understandable that a mortgage lender will look for proof of your income, but they will also want details about your outgoings. A lender needs to review how much you earn and how much you spend to properly appraise your accounts. Be prepared to provide proof of:

  • Utility bills
  • Household bills
  • General living costs
  • Council tax
  • Insurance policies

It is okay to be nervous about a mortgage application but as with all things in life, the more prepared you are, the easier it will be for you to overcome a challenge.

If you are looking for guidance or assistance in applying for a mortgage or you need assistance in determining your options, contact Move Engine. We have helped many people prepare to apply for a mortgage and we look forward to assisting you with your move.