Paperwork required for a Mortgage Application
Paperwork required for a mortgage application and what information the lender is looking for.
Generally lenders will require the following supporting paperwork to accompany your mortgage application:
- Valid proof of identity for each applicant – passport or driving licence.
- Separate proof of address for each applicant – utility bill dated within the last 3 months, annual council tax bill, HMRC Notice of Coding for current tax year. Mobile phone bills, car insurance policy, TV licence are not acceptable.
- Last 3 months’ payslips (not handwritten) or if self-employed, last 2 years’ tax calculations and overviews as agreed by HMRC.
- Last 3 months’ personal bank statements for all accounts.
- Latest P60.
- Proof of child maintenance payments.
- Proof of state benefits that are being included within affordability.
- Proof of deposit by way of last 3 months’ savings statements or a gifted deposit form.
- Memorandum of sale from the housing provider.
The Memorandum of sale from the housing provider must be on the housing providers letterhead and include the following information:
- Your name(s).
- Property address.
- Full market value.
- Share purchase price.
- Percentage share being purchased.
- Monthly rent.
- Annual Service charges.
- Annual Ground Rent.
- Remaining length of lease.
This is not an exhaustive list and the lender can request additional documentation at any point.
When assessing an application, the lender is looking for financial stability. They will be concerned if they see more than £50 per month being spent on gambling sites and they may decline your application accordingly. It is important not to exceed any overdraft facility and ensure all direct debits/standing orders are paid on time and not returned due to lack of funds.
It is also worth checking your credit file before making an application. Late credit payments, defaults and CCJ’s will impact your credit score and could result in an application being declined. Make sure your credit report shows your correct voters roll information covering the last 6 years.