You’ve found your dream house online and you’re ready to get the ball rolling with applying for a mortgage, but you don’t know what documents you are likely going to need for your application. There are several documents that you will need to provide to your lender, although the below isn’t a definitive list for every lender, it will allow any mortgage broker to make a start on your application. These documents will help the lender to assess your financial situation and determine whether you are a good candidate for a mortgage. In this blog post, we will discuss the 6 documents you will need to get a mortgage on your first home.
- Proof of identity – One of the first documents that you will need to provide is proof of your identity. This may include a valid passport, driver’s license, or national identity card. You will also need to provide proof of your current address, which can be in the form of a utility bill or bank statement which needs to be dated within the last 3 months.
- Proof of income – Another important document that you will need is proof of your income. This can include your last 3 recent payslips, as well as bank statements showing your salary payments going into your account. If you receive any form or quarterly/annual bonuses you may need to provide additional payslips or a copy of your p60 as well. If you are self-employed, you will need to provide your tax calculations and tax year overviews for the past two to three years. If you receive any additional income, such as from investments or rental properties, you will need to provide documentation of that income as well.
- Bank statements – Your lender will also want to see your bank statements for the past three to six months. This will help them to assess your spending habits and determine whether you are able to make your mortgage payments on time. It is important to make sure that your bank statements are accurate and up-to-date, as any discrepancies could cause delays in the mortgage approval process.
- Employment details – In addition to proof of income, you may need to provide details about your employment history. This may include your current employment contract, as well as details of any previous jobs you have held. Your lender may also contact your employer to verify your income and employment status.
- Credit report – We will also want to see your credit report, which provides details of your credit history and any outstanding debts. You can obtain a free copy of your credit report from one of the three credit reference agencies in the UK – Experian, Equifax, or TransUnion. It is important to review your credit report before applying for a mortgage, as any errors or inaccuracies could affect your credit score and your ability to secure a mortgage.
- Proof of deposit – Your lender will want to know where your deposit money is coming from. If it’s from savings you may need 3-6 months’ bank statements showing how these funds have been built up or if the money is a gift you will need a gifted deposit letter signed by the person giving you the money. In some instances, the lender will also want their bank statements showing they have the available funds to give to you.
In conclusion, applying for a mortgage in the UK can be a complex process, but providing the right documents can make it easier. By preparing these documents in advance, you can ensure that your mortgage application is processed quickly and smoothly and that you are able to secure the financing you need to purchase your dream home.