A Look at the Most Important Documents You Need to Prepare when Applying for a Mortgage

A Look at the Most Important Documents You Need to Prepare when Applying for a Mortgage

When you are ready to take that big step and buy your own home or property, you will have to think about applying for a mortgage. This is a normal step for everyone, unless, of course, you are a billionaire. But a mortgage entails a lot of time and effort, especially when it comes to finding the ideal mortgage arrangement. For this, you would have to consider certain factors, such as how much you can afford, the kind of mortgage suitable to your situation, and how long the mortgage arrangement should be. Help from a mortgage advisor is always recommended, particularly if it’s your first time. Additionally, you will have to be ready to present certain documents when you submit your application. Here’s a look at the most important documents you need to prepare when applying for a mortgage.

  • Proof of identity

The first document you would need to present is proof of identity. Bear in mind that you need to have originals instead of printed or scanned versions, although the exception to this rule is bank statements since lenders will accept online printouts.

The best proof of identity you could present would be either your driving licence with photo or your passport. You should remember, however, that if you have an address on your driving licence which is not your current address, this could result in complications such as having to submit more documents to prove your current address. You can avoid this by making sure that all the information on your proof of identity is updated.

You also need to present at least 2 documents that prove your address, which can be a bank statement, a council tax bill, a credit card statement, or a utility bill. These documents should also be recent – within the past 3 months is ideal.

Of course, any document you present as proof of identity should have the correct information. If your name is different, for instance, then this could lead to problems as it will not be accepted as proof. The same is true if you have changed your last name or surname upon getting married.

  • Proof of income

Proof of income needs to be submitted, and this can come in the form of payslips from your employer, as the mortgage advisors from mortgage-wise.co.uk will tell you. Note that only the most recent pay slips will be accepted. If you can, ask your employer for your P60 as well. If you are self-employed, you will need to provide details regarding your tax assessment as well as details of your bank accounts for the past 3 years, which would include the existing tax year. Self-employed individuals should also include accountant statements as well as tax return forms (SA302) plus receipts.

  • Proof of outgoings

It is also important to provide proof of your expenses or outgoings, and these can include credit card statements (preferably from the past 3 to 6 months), details on loans, car financing, hire purchase contracts or agreements, and a detailed list of other expenses such as your daily expenses, food and utility expenses, entertainment expenses, childcare expenses, and so on.


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