What Documents Do You Need For a Mortgage Application?

Before you make a mortgage application, you’ll need to hand in several documents to get the ball rolling.

These can be divided into four categories: proof of ID, proof of income, proof of deposit and proof of expenses. Depending on your circumstances, you may require more or fewer documents. Self-employed individuals, for example, will need different documents than those in PAYE employment.

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

Proof of ID

Before submitting a mortgage application, you must 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 your identity. You don’t need both; one will suffice. Make sure your current address is on the document you use, as it will slow down the process if not. It’s also important to remember that 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 that you have the right to live in the UK. This could include all or one of the following: a Family of a Settled Person Visa, UK Ancestry Visa, residence card, or a government share code 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. Most lenders will require 3 to 6 months’ worth of statements, which you can get from your online banking or ask for in a local branch.

Deposit funds

While your bank statements can show proof of deposit, some lenders may require more evidence. This might include statements from a savings account, such as a Help to Buy ISA or Lifetime ISA, premium bonds statements, share investments statements or even pension investment statements.

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 address

Most lenders will accept a bank statement as proof of address as long as it’s within the last three months. However, if you don’t have this you can use a utility bill, such as your gas or electricity provider or your council tax bill, to prove where you live.

You must 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. Your mobile phone bill or any other communication bills won’t be accepted as proof of address.

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

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

Proof of income

Before applying, your lender must 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 your employer’s name, payment date, and net and gross pay.

Most lenders will ask to see a P60 form too, whether you’ve started a new job or not.

If you’re self-employed

The process is a bit trickier if you’re self-employed. Most lenders must see 2 years’ worth of accounts. These can be found on SA302 forms, which you can get from HMRC. You’ll also need the corresponding tax year overviews.

While getting a mortgage with just one year of accounts is possible, not all lenders adhere to this. The documents you’ll require vary depending on the type of self-employment. A few examples are below:

• Sole Trader: If you’re a sole trader, you’ll need your SA302 forms and tax year overviews.
• Limited Company Directors: If you’re a limited company director, you’ll need the company accounts for the last two years, SA302 forms, payslips if you get PAYE income and your tax year overviews.
• Construction Industry Scheme (CIS) employee: If you’re a CIS employee, you’ll need your last thirteen weeks of CIS statements or three months if paid monthly.

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 for proof. 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 over 55 and applying for an equity release or lifetime mortgage, your lender may ask to see a pension payslip as evidence.

Proof of expenses

In addition to your income, lenders will want to scrutinise your outgoings before lending 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 and 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. If the outgoings are unusual or unclear, they may ask questions about them, so be prepared to answer them.

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 your loans, such as the amount 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 them to determine how much you owe and how long you’ve owed them.

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.

Call us on 0330 818 7026 or enquire and get matched with a broker today for a free initial conversation.