Proof of I.D
Your lender needs to know that you are who you say you are, with either:
- Passport – must not have expired
- Driving license – must have your current address
Proof of where you live
There are a number of documents you can supply to prove your current address:
- Council tax statement – You need to provide the latest one available
- Utility bills – These usually need to be dated within three months
- Bank statements – If you are using these to confirm your address, you will normally have to supply paper copies which include your name and address (not always available on online statements).
Proof of how much you earn and your regular outgoings
Quite what you will need to provide depends on whether you are employed or self-employed:
- Permanent employment –Your P60 and your latest payslip/s showing your gross and net pay; the exact number of payslips required will depend upon how frequently you are paid and which lender you are applying to – to make sure your mortgage application moves quickly, it’s worth hunting out the last few months’ worth (it’s typically the last three months if you are paid monthly). If you are relying on additional income, such as overtime, additional allowances or bonuses, you will need to provide payslips that evidence these. Your payslip also needs to show any outgoings deducted as source, such as childcare vouchers and student loan repayments.
- Contractors – You will need to be able to provide your current employment contract and any relevant extension letters. If you are employed through a temping agency, your lender will want to contact your employment agency.
- Self-employed – Expect either to provide your accountant’s contact details or your last three years’ HMRX tax calculations and TAX Year Overviews, showing full payment of tax.
- Director of a limited company – If you own 25% or more of your business, you’ll need to provide the limited company accounts and tax returns for the last three years; if you own less than 25%, from a mortgage lender’s perspective you count as being employed, therefore they will want your most recent payslips.
- Pensioner – You will need to provide your pension statements.
Proof of additional income: Additional income that you might be relying on for your mortgage application, such as maintenance payments or state benefits, will need to be evidenced through your most recent bank statements.
Proof of your regular outgoings
As well as any regular outgoings shown on your payslips, you will also need to provide your last three bank statements to show your regular direct debits and standing orders, as well as loan and credit card payments. If you’re making a joint mortgage application and you have separate bank accounts, we’ll need to have statements from both bank accounts.
Proof of your deposit
Whether your deposit is from savings or a gift, your lender will need confirmation that you have it:
- Savings – Your bank statements can confirm your savings, but if you have had big cash transfers you may have to explain these. Your bank statement will need to have your name and address on it; if your online statements don’t show this, make sure you get hard copies.
- Gifts – Usually a letter is required to confirm the gift, but the format can change between lenders. Make sure your fairy godmother is ready to sign the required paperwork when you make your mortgage application.
- Equity from another property – A lot of homeowners use equity from an existing property to raise the deposit for future properties, but you need to make sure that everything aligns for your purchase to proceed.
Pulling together the paperwork that you are likely to need to supply will help make your mortgage application as easy as possible.