Advice from a Mortgage Broker – Preparation is Key
Wednesday, November 25th, 2015
Applying for a mortgage can, at the outset, sometimes appear to be quite daunting.
Last month, here at Caboodle Finance, Birmingham we looked at credit reports in the context of anything that might be construed as detrimental to a mortgage application so, this month we focus on the documents that will be required as part of any application process in order to give you the best possible chance of getting approved.
Typically these would include:
- Proof of ID – Check your passport and driving licence are in date and show the correct name & address. If you have married recently the lender may want to see your marriage certificate too
- Proof of Address – Keep some recent utility bills (dated in the last 3 months) to evidence your address. Other items such as Council Tax Bills and House Insurance Certificates can sometimes be accepted
- Bank Statements – Mortgage lenders will want to see your last 3 months bank statements to evidence both your income and regular outgoings. Online statements are fine in most instances as long as they are printed from the bank website and show your name and address
- Proof of Income
- Employed applicants – Keep your latest 3 months payslips and most recent P60. You may also need to provide additional payslips to evidence any annual bonus, commission or overtime you receive.
- Self-employed applicants – If you have them you may be asked to provide anything between 1 and 3 years’ accounts. Some lenders may also request your HMRC Tax Year Overviews and SA302’s. These official documents can take 10-14 days to arrive in the post from HMRC, so we suggest that you or your accountant register on-line with HMRC before applying for a mortgage, you can then download the documents in around 30 seconds!
- Other income – If you receive income from investments or pensions then you might be asked to produce annual statements to evidence the amount involved. Likewise, if you receive any benefit income you may be asked to provide your entitlement letter to confirm the amounts payable.
- Proof of Deposit – You will need to provide statements to show your deposit has been saved over a period of time. Alternatively, if the deposit is being gifted by a parent or close family member then the lender may require a certificate or letter from them to confirm the monies are being gifted without any reservations or claim to the property.
A Mortgage Broker can help…
If you are struggling to get your documents together in readiness for a mortgage application and need some help, or if you need some advice regarding any of the requirements then speak to an expert.
At Caboodle Finance, Birmingham we know the various criteria in depth and will be able to guide you in the right direction, so call today on 0121 308 9114 or just click HERE to contact us by email and we will be delighted to help guide you through the application process.