Key Documents for Your Mortgage Application

Applying for a mortgage can be a paperwork-heavy process, but knowing what documents you need ahead of time will help make the process smoother. Here’s a guide to the paperwork you may be asked for when applying for a mortgage.

Key Documents for Your Mortgage Application

When you apply for a mortgage with a lender, they need to be confident that you can make the repayments. To assess your ability, they will ask for various documents to verify your identity, income, and expenses. The documents you need to provide generally fall into three categories:

1. Proof of ID
2. Proof of Income
3. Proof of Expenses

These categories help the lender understand who you are, how much you earn, and how much you spend. Let’s take a closer look at each of them.

Proof of ID/Address

Lenders will need to verify your identity and address before they can proceed with your application. The documents typically required for this include:

• Current photo passport or driver’s licence
  Ensure it’s not expired and that it shows your current address to avoid complications.
• Recent utility bill (gas, electric, etc.)
  This must be a full bill, not just the summary. In a digital age, you may need to download a bill or request a paper copy from your provider.
• Bank statement or credit card bill
  Must be dated within the last three months. All documents must match in terms of your name and address for consistency.

If you are applying with someone else (such as a partner), their name should be on at least one of the utility bills as proof of joint residence.

Proof of Income

To determine your affordability, lenders need to understand how much you earn. Depending on your type of income, the documentation you’ll need varies:

If you are employed (PAYE):

Recent payslips: These must be for the latest 3 months. The payslips should display your name, employer’s name, and both net and gross pay. If you’ve recently started a job, or haven’t been in your role long, you might also be asked to provide your Contract & P60 as further proof of employment. If you have overtime or bonuses, you may need to provide further payslips.

If you are self-employed:

Tax Calculations (SA302) and tax year overviews from HMRC, covering the last 2 years.

Potentially an accountant’s certificate: This must be completed by a qualified UK accountant and can be provided by your bank or lender.

If you have other sources of income:

Recent HMRC letter for child benefits and tax credits.

Proof of Expenses

Lenders also need to understand your regular outgoings, as they will influence your ability to repay the mortgage. Common documents requested for proof of expenses include:

• Bank statements: These must be no more than 2 months old, fully legible, and not amended/redacted in any way. The statement should show your name, address, and running balance.

Be prepared for questions about any unusual or unclear transactions on your bank statement. This information is confidential and will not be shared with anyone by your lender.

Preparing for Your Mortgage Application

To ensure your application runs as smoothly as possible, here are a few steps to take:

Ensure all documents are in English. If any are not, they will need to be professionally translated.

Double-check names on utility bills to make sure they match your ID documents.

Ensure all forms of ID are up to date.

Have multiple copies ready, especially as your conveyancing solicitor will need them.

Set up online banking, if you haven’t already, to easily access your payslips and bank statements.