Arranging a mortgage - what will I be asked for?

Posted 11 December 2015 by Nick Parkhouse

We take you through the documentation you'll be asked to present when you apply for a mortgage...

Since April 2014, new rules imposed on lenders require them to carry out tough affordability checks on borrowers looking for a mortgage. As well as having to prove your income you will also have to demonstrate to a lender that your new mortgage is affordable to you both now and in the future.

So, what will a lender ask you for if you're applying for a new mortgage?

Proof of your identity

To satisfy money laundering regulations, you will need to provide your identity in order to be approved for a mortgage. You'll need to provide:

  • A current full, signed UK or foreign passport
  • A current full or provisional UK photocard driving licence showing your current address
  • A current EU National Identity card, signed with your photograph

You will also need to prove your current address. A lender will typically accept:

  • A full or provisional UK driving licence showing your current address (if you haven't used this to prove your identity)
  • A utility bill, less than three months old (mobile phone bills and store card statements are normally not acceptable)
  • Your most recent Council Tax bill, payment book or exemption certificate
  • Your latest HMRC tax demand/PAYE coding letter
  • A UK/foreign bank, building society or credit card statement, less than three months old

Proof of your income

The documents you need to prove your income will depend on whether you are an employee or you're self-employed.

If you're employed

  • Your last three months payslips
  • Bank statements showing your salary being paid into your account
  • Your last P60
  • Proof of other income you receive (e.g. official Child Benefit, Tax Credit, Disability Living Allowance letters) or official proof of any maintenance (court order, CSA letters)

If you're self-employed

  • Your last two/three years' trading accounts
  • Tax calculation forms from HMRC (your SA302 forms)

In some cases, a lender will write to your accountant directly in order that they can complete a certificate to prove your earnings.

Remember that each lender will have their own criteria and some will ask for more information than others.

Proof of your outgoings

As well as proving your income you will also have to prove that you can afford your mortgage payments. To establish this, a lender will also typically need:

  • Three to six months’ bank statements
  • Details of any credit commitments you may have, including credit cards, loans, overdrafts or student loans
  • Proof of any second properties/buy-to-let properties that you own - you will generally have to provide addresses and annual mortgage statements. You may also have to provide proof of rental income

You will also have to provide details of the property that you are mortgaging, as well as solicitor and estate agent details if applicable.

Your lender is also likely to want to see proof of any life or critical illness policies you have as well as proof of any investments you intend to use to repay the mortgage (endowments, ISAs etc).

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