What documentation do you need to get a mortgage?

Aug 11, 2021 | Uncategorized

When you apply for a mortgage with a bank or another type of lender, they will want to make sure you can make the repayments before they grant it to you.

To prove your finances are sound, you’ll have to provide a range of documents on top of records and proof of identification.

Trying to hold all the different types of paperwork you need in your head is a recipe for disaster, so we’ve summarised everything you’ll need before you apply in this one blog post.

Proof of ID

First things first, your lender will need to know who you are and where you currently live, which you’ll have to prove with certain documents.

That includes your current photo passport or driver’s license, which should have your current address on it to avoid complications. 

Make sure you’re not using an expired form of ID – you would be surprised how many people make this mistake.

You will also need to provide your most recent utility bill. This can’t just be the summary – banks and other lenders need to see the full bill. If you’re buying a home with someone you already live with, their name needs to be on the bill as well.

You’ll also have to provide your last three months of bank statements or credit card bills, which is another method lenders use to verify your current address.

Proof of income

Lenders will also want to see your bank statements and credit card bills to confirm your income, helping them to get an idea of which of their packages you can and can’t afford.

Lenders will also look at your expenses, paying close attention to regular payments such as school fees and travel, which may have an impact on what you can afford to repay monthly.

Remember they may ask you about purchases and incomes that seem out of the ordinary that you should be prepared to talk about.

You will also need to supply documents depending on the type of income you receive.

For instance, if you’re in PAYE employment, you will have to supply payslips that must be no more than three months old – six weeks if you are paid weekly. They should feature both your name and your employer’s name, payment date, net pay and gross pay.

If you have recently started a new job, or have been out of work for a while, lenders may want to see P60 documents to prove you have been in work at some point in the past.

Self-employed individuals can use their self-assessment tax returns and tax year overviews which must represent the same period of time, no later than the last two years.

If you have additional sources of income, you may also need:

  • P60 and/or the last three months of payslips to use as evidence of bonuses, overtime and commission
  • most recent letter from HMRC to evidence any child benefits and tax credits you claim
  • most recent letter from the Department of Work and Pensions if you claim state pensions and state benefits.

Tips to get ready

As you can see, you’ll potentially have to provide a large amount of paperwork to apply for a mortgage, which can be difficult to handle and organise.

To make the process as easy as possible, make sure the right names are visible on utility bills, ensure your ID is in date and prepare multiple copies of your paperwork.

To make things even easier, set up online banking and get online access to your payments if you haven’t already.

We’re also always free for a chat if you want some extra advice and information on how you can prepare for a mortgage application.

Talk to us about your mortgage application.