If you are planning to apply for a mortgage anytime soon it can pay to make yourself aware of the paperwork you’re going to need. With many bills and bank statements now paperless, it may require a little work to get paper copies of certain documents, so getting in early could make things run more smoothly for you.
Please note that the documents you need for a mortgage will depend on your circumstances and the requirements of the lender, but this list should stand you in good stead.
Your credit report
Take a look at your credit report from Experian, Noddle, Clearscore, Equifax or CallCredit.
- Remember that the score you’re given is merely an indicator, open to interpretation by different lenders.
- It’s helpful to be registered on the Electoral Roll with your main address
- You must have an accurate address history
- Avoid overdrafts and payday loans at all costs
ID and address documents
If you are required to bring evidence of your ID or proof of address (which you almost certainly will due to money laundering regulations) you must provide the original document. It must also be current and valid.
- Passport (must not be expired)
- Driving license (the address must be your current one)
- Council tax statement (provide your most recent one)
- Utility bills (dated within the last 3 months)
- Bank statements (lenders require physical statements for proof of address)
Evidence of source of deposit
If you are purchasing a property, lenders will need to see adequate proof of the source of your deposit. Essentially, they want to see that you accumulated it in your savings or received it as a valid gift.
- With savings, there must be bank statements showing the gradual accumulation of the money – any large lump sum transfers must be explained. Some lenders will be satisfied with online statements but your name and address will be needed. Check your online facility includes this information.
- With gifted deposits, there should be a formal letter from the person(s) giving you the money. The precise requirements will vary with different lenders, so make sure the gift giver is available to give a signature if needed.
- If the money is being raised on another property, you may want to get the process started earlier to ensure the money is available when it’s needed.
Proof of income
The way you provide evidence of income will depend on which lender you are proceeding with. That said, it’s good practice to prepare the following so that you can share them if necessary:
- Your latest 3 months of payslips (digital payslips are usually sufficient if your personal details are included)
- Your latest 3 months of bank statements (for the account that your salary gets paid into – your name and address will need to be visible)
- Your latest P60 (particularly where bonus income is involved)
- Your last 2-3 years of SA302s or signed accounts and 3 months’ business bank statements where applicable (for self-employed applicants)
If you already have a mortgage
You’ll need a current mortgage statement
Other documents you could be asked for
- Proof of non-earned income (tax credits, maintenance, child benefit, etc.)
- Proof of additional income (commission, bonuses, overtime, etc.)
- Proof of right to reside (residency cards, visas, etc.)
Is your Solicitor on the lender’s panel?
Lenders are highly attentive when it comes to mortgage fraud. You should ensure your Solicitor is with a reputable firm and it won’t hurt to ask if they can work with most lenders. Think Plutus can help you find the right service if you have any doubts or concerns.