One of the most common reasons for a delay in the mortgage application process is missing information or not providing the correct documentation.
Although lending criteria can vary between lenders, they will all demand specific information in order that they can properly ascertain exactly who they are lending to, confirmation of where they live and their ‘risk profile’. In other words, how can you prove you enjoy a regular income and regularly meet your financial responsibilities.
Therefore, if you are an employee and you’re considering applying for a mortgage any time soon, it’s worth doing some financial preparation so that you are able to provide the following as a minimum;
- Who are you –
- Original EU Passport – Current and in date or
- Original Non EU Passport + Visa – Current and in date or
- Original Photo Driving Licence – Current and in date
- Where do you live –
- UK Bank Statement (within 3 months)
- Credit Card Statement (within 3 months)
- Driving Licence
- HMRC Coding Letter
- Council Tax Bill
- Utility Bill (not Mobile phone and must be within 3 months)
- Mortgage Statement
We must see the original document, and they cannot be online documents.
- Where do you work and how much do you earn?
- Original latest 3 months consecutive payslips (or 12 weekly).
Each must show both your name and your employer’s name. We suggest you also send your P60 if you have additional bonus payments, commission and/or overtime.
- Affordability checks
To illustrate that you comply with the lender’s affordability criteria provide the latest 3 months’ bank account statements
These must include;
- Your name & account details
- Salary Credits (must correspond with payslips)
- Rent or Mortgage Payment
- Proof of deposit
- A Bank Statement showing the source of the deposit payment
- A gifted deposit letter from whoever is supplying funds
Note – If you are buying and selling simultaneously, and not putting any other money in, you can ignore this section.
- Check your credit file
We may also need to check that the information held on the credit register about you before we apply for the mortgage. If you would like to check it yourself you can get a free copy here without any subscriptions.
- Life Insurance and any other protection policies
If you already have existing mortgage protection arrangements in place we will need to check it is sufficient and will need to see;
- Mortgage Protection policies or
- Life cover documents or
- Details of any cover provided by your employer – copies will do!
- Proof of pension provision (only if you are buying a home to live in and the mortgage term goes past your retirement age)
In this case we’ll need to see;
- Statement showing projected pension benefits and any pensions in payment