When applying for a mortgage, various types of documentation are required to complete your mortgage application. Knowing which documents you need prior to applying puts you in good stead to get the ball rolling as soon as we can. We’ll typically ask you to supply your documents before we start the process of getting you a Mortgage in Principle.
To ensure you’ve got everything you need, this guide provides a comprehensive list of mandatory documentation and other types you might need.
Mortgage documents you’ll always need:
There are several types of documentation that are always required during the mortgage application process, including:
- Bank statements from the last three months
These statements must have your name and address on. They must also be presented as PDF documents — no screenshots. Make sure the statements show your employed income. We may request three months’ of bank statements where all bills go out.
This documentation is a way of verifying your income, however, lenders may look at general account usage.
To position yourself as a great candidate, it’s a good idea to tidy up your bank statements before applying for a mortgage. This includes things like ensuring there are zero bounced direct debits and limited gambling activity. It’s also important for lenders to see applicants who haven’t exceeded their overdraft limit. Any large cash deposits or money transfers will require proof as source; you’ll also have to clarify reasoning behind any regular standing orders.
- Proof of deposit
If your mortgage deposit isn’t from equity, we ask for proof of deposit. This is typically in the form of three months’ statements from a savings account or from the bank account the money is held in. These statements must show your name and address.
If your deposit was gifted, we require the name and address of the individual giving the deposit, as well as confirmation of the amount.
- Personal ID
We always ask for a copy of your passport or driving licence as proof of name. These ID forms must be in date. If a driving licence isn’t available, we may then ask for a bank statement or utility bill as proof of address.
NOTE: Ensure all documentation provided contains matching information. The process may be delayed if you have different addresses on your forms of ID, for example.
A bank account
Although this is not a document per se, it’s good to have a bank account already set up for your mortgage repayments. We need your account details for the application form. It’s possible to send an application without your banking details, however, it can delay the process.
Some first-time buyers talk about opening a joint account during the process, which is perfectly fine, but it’s in your best interest to set one up prior to applying for a mortgage.
Proof of income and employment
We require proof of your income when applying for a mortgage, as it shows lenders you can afford the monthly repayments. How you prove your source of income depends on how you are employed.
If you’re employed:
If you work for a company as an employee and receive your age via PAYE, we ask for three months’ payslips. Any overtime, commission, or bonuses should be included. This is then used to calculate your total income. We may also look at deductions, such as student loan repayments.
A P60 may be needed if you have a significant amount of overtime listed on your payslips.
Sometimes we ask for your contract of employment—this is if you’ve recently started a new job or are due to start a new job.
If you’re self employed:
If you operate as a self-employed sole trader, we require the last two years of personal tax calculation and your tax year overviews (both must be from the same period). This information can be found on your HMRC account in the form of the self-assessment tax return form (SA302).
If you’re a self-employed director of a limited company with 20% or greater shareholding, we also require the last two years of personal tax calculations and tax year overviews. This enables us to verify salary and dividends over the period.
Your company accounts must be provided and certified by an accountant.
It’s also possible for us to verify your income using your share of limited company net profits plus salary.
If you’re a contractor:
If you work as a contractor under CIS (Construction Industry Scheme), we require three months’ CIS statements, or sometimes 12 months’ statements. These must show your pay and the tax deducted.
Other documents sometimes required:
The following documents are sometimes required during the underwriting process—we don’t ask for these at the beginning of the mortgage process.
- Employer reference
Sometimes your employer may be contacted for a reference. This is normally contact with the HR department or a manager.
- Accountant reference
Some lenders require an accountant reference to verify your income. The lender will request this directly from you.
- Debt confirmation
If you are repaying or have recently repaid unsecured debt, lenders may ask for statements from the finance provider or credit card company to show repayments. This isn’t always requested, though.
- Mortgage statements
This type of documentation is sometimes requested if you’re purchasing or remortgaging. If a lender can not see your mortgage on your credit report, they may request statements for the last 12 months. It isn’t a very common occurrence, however.
Applying for a mortgage comes with plenty of paperwork, so it’s important to organise your necessary documentation as soon as you can. Doing so will help speed up the application process.
If you need any support or additional guidance on the types of documents you’ll need, get in touch with us. One of our friendly mortgage advisers will be able to point you in the right direction.
FAQs
Can you get a mortgage without three months’ payslips?
Most lenders ask for at least three months’ worth of payslips. However, some applicants may not be able to provide this if they’ve just started a new job, for example. In situations like this, there are lenders that accept a permanent employment contract as proof of income.
If you’re concerned about proving your income, speaking to one of our expert mortgage advisers is a great idea. We can talk through your options and ensure you have a valid way of proving your earnings.
Do mortgage lenders look at all of your bank accounts?
If you have multiple current accounts or a separate savings account, lenders want to see statements from each account you hold. This provides a full picture of your finances and helps lenders assess your affordability.
What counts as income for a mortgage application?
The most common source of income for mortgage applicants is their employment income. It all depends on the lender. Applicants may also be able to use the following to support their mortgage application:
- Rental income
- Self-employed earnings
- Pension income
- Investment income
- Benefits and tax credits.