What Documents Do You Need For a Mortgage Application?

Before you make a mortgage application, there are several documents you’ll need to hand before you can get the ball rolling.

These can be broken down into three categories: proof of ID, proof of income and proof of expenses. Depending on your circumstances, you may require more or less documents, self-employed individuals will need different documents than those in PAYE employment for example.

In this article, we’ll look at the various documents you need for a mortgage application, why you need them and where you can get them from.

Proof of ID

Before you can submit a mortgage application, you’ll need to prove to your lender that you are who you say you are. This will require showing documents that prove your identity and where you live, such as the ones listed below.

Passport or Driving licence

You’ll need this to prove identity, you don’t need both one will suffice. Make sure your current address is on the document you use, as this will slow down the process if not. It’s also important to remember you can’t use an expired document, so check the expiry date before you apply.

Proof of residency and nationality

You only need to provide this if you’ve moved from another country to the UK. Lenders will require some form of evidence you have the right to live in the UK, this could include all or one of the following: Family of a Settled Person Visa, UK Ancestry Visa, residence card, a letter from the Home Office, biometric residence permit or a Tier 1 or 2 Visa if you have indefinite leave to remain.

Bank statement or credit card bill

Lenders require your bank statements to verify your income, clarify your affordability and you have the deposit funds you say you do. Most lenders will require 3 to 6 months’ worth of statements and you can get these statements from your online banking or ask for them in a local branch.

Utility bill

Lenders require a utility bill to prove where you live. You will need to show the full utility bill, not just the summary. You’ll either need to download the bills from your provider or contact them and request a paper copy if you have paperless bills.

If you’re getting a joint mortgage, most lenders will require their name to be on one of the utility bills.

A useful tip is to have multiple copies of these documents, as your conveyancing solicitors will need copies too.

Proof of income

Before submitting an application, your lender will need to see your income to determine whether you can afford your monthly repayments. What you need to provide will depend on the type of employment you have, which we’ve listed below:

If you’re in PAYE employment

Things are more straightforward if you’re in PAYE employment. Most lenders will ask to see your payslips which must be no more than three months old. The payslips will need to show your name and employer’s name, payment date and net and gross pay.

If you’ve started a new job or you’ve not been in your current role very long, lenders may ask to see a P60 form to prove you were working before you took your new job.

If you’re self-employed

The process is a bit trickier if you’re self-employed. Most lenders will need to see 2 to 3 years’ worth of accounts. These can be found on SA302 forms which you can get from HMRC. While it’s possible to get a mortgage with just one year of accounts, not all lenders adhere to this.

Additional sources of income

Lenders might ask to see some other sources of income depending on your circumstances, here are some of the most common:

• Child benefit letter: If you receive child benefits, your lender might ask to see proof of this. A letter from HMRC showing you qualify for the benefit will suffice, and some lenders may accept bank statements showing payment of the benefit.
• Department of Work and Pensions (DWP) letter: Some lenders may ask for confirmation that you receive benefits from the DWP.
• Pension payslip: If you’re applying for an equity release or lifetime mortgage and you’re over 55, your lender may ask to see a pension payslip as evidence.

Deposit

As well as your income, lenders will require evidence of your deposit. You can show statements from a savings account to prove this. However, if you’ve received a gifted deposit, you will need a letter from the person gifting the deposit to you confirming the source of the funds. Some lenders may require letters from both parties, but this will depend on which lender, and this is something a mortgage broker can advise you on.

Proof of expenses

As well as your income, lenders will want to scrutinise your outgoings before loaning to you. Some of the most common things they look at are listed below:

Bank statements

Lenders will look at your bank statements to check your outgoings as well as your income. They’ll want to see how your regular outgoings will impact your ability to meet your monthly repayments.

You’ll need to show bank statements from within the last two months that have not been amended in any way. They may ask questions about specific outgoings if they are unusual or unclear, so be prepared to answer questions about this.

Other documents

Lenders may also ask to see other documents if you have some of the following outgoings:

• Loans: Lenders may request more information on any loans you have such as how much you’ve taken out, your repayment schedule and the remaining balance.
• Insurance products: If you have any insurance products such as life insurance, your lender might want to see information about your policy.
• Unpaid bills: If you have unpaid bills, your lender might want to see details of these to see how much you owe and how long you’ve owed it for.

How a broker can help

Whatever your situation, if you’re ready to start the mortgage application process, it’s worth speaking to an independent broker first. They’ll be able to guide you through the journey, ensure you have all the correct documentation, and advocate for you with lenders.

They can also often secure highly competitive deals and may have access to exclusive products that aren’t available to the general public, which could save you money.

Our broker-matching service can connect you with an expert who can help you with the mortgage application process.

Give us a call on 0808 189 2301 or make an enquiry and get matched with a broker today for a free initial conversation.