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Are you a first-time buyer thinking about getting a mortgage but not sure where to begin with the process? Well don’t panic, we have assembled a quick checklist of all the important documents you will need so you can get started on that mortgage application! 

Applying for a mortgage can seem like an overwhelming process but we are here to help walk you through the first stage of the process by providing the top 10 documents you will need to apply for a mortgage (plus a few helpful tips!)

1. Proof of income/permanent employment 

You will be asked for proof of permanent employment so you can show proof of steady income. To show evidence of this you may be asked to show payslips. If you are paid monthly then you must provide payslips from the last 3 months or if you are paid weekly then the last thirteen weeks will be required. If you are including a bonus as part of your pay even though it is not guaranteed, there will still need to be evidence of this.

If your payslips are sent to you electronically/online you can download these as a PDF. Or if they are in paper form then you will need to scan these and send them as a PDF. If neither of these is an option then having your P60 form is another way to prove your monthly income. 

2. Self-employed 

If you are self-employed it is a slightly different process. You will need to provide 2 to 3 years SA203s and 2 to 3 years of bank account statements. You will need to provide the last two years’ HMRC tax year overviews showing that your full tax liability has been paid. You have the option to replace the most recent year’s records with financial accounts produced and signed by a qualified accountant. 

If you have a limited company, you will need to provide the last two years’ accounts produced and signed by a qualified accountant. The most recent year must be dated no more than 18 months before your mortgage application submission date.

  • If you’ve been furloughed, we’ll need a letter from your employer detailing:
  • The date you’ll return to work (this must be within the next 3 months.
  • Your contract type (permanent, fixed-term, zero hours)
  • Your return to work income: without this letter, your mortgage application won’t be able to be completed.

(If your return to work date is more than three months away or you do not currently have a return to work date then, unfortunately, your application cannot be able to be processed). 

3. Potential additional documents: 

You may be asked to provide evidence of additional incomes, including; bonuses, commission, overtime, etc., and non-earned income, which includes; maintenance, tax credits, child benefits, etc.

If you are receiving monthly commission, bonuses, or overtime you will need to provide your latest P60 or HMRC annual tax summary. In terms of annual or quarterly bonuses, you will need to provide either your latest two years’ P60s, HMRC annual tax summaries, or payslips showing that you’ve received this income.

If you receive benefit income then you will be asked to provide the latest benefit statement from the Department of Work and Pensions, to confirm the type and amount of income you receive. 

  • Bank statements – providing your latest statement is best but you can be asked to present statements for the last 6 months. The statements will need to be from the account from which you are planning to make your mortgage payments. If you are using internet statements then you must make sure a couple of things; that your name and address are shown, that it contains your account number and sort code, it includes the bank’s logo, and that the HTTP address is included at the bottom of each page.

  • Evidence of deposit – if this is from your own savings for your first-time buyer mortgage deposit then you must provide a saving statement/bank statement. If it is from a gift then a Confirmation of Gifted Deposit form will need to be completed. In addition to this, there may be a need to provide bank statements of the person who provided the gift to you. If the person providing the gift resides in the UK, then it won’t be necessary to provide these statements. However, if they live in the European Economic Area then they will have to provide statements up to 3 months and if they live outside of the UK and European Economic Area they will need to provide statements up to 6 months. 

  • Address - You will be asked to provide evidence of your current address and it can be proved through one of the following....

  • Driving license (provisional or full) – must include paper counterpart and must contain up to date address.
  • UK based bank statement - within the last 3 months
  • Building society statement - within the last 3 months 
  • Utility bill (which can include gas or electric) - within the last 3 months
  • Water bill or council tax bill - within the last 12 months

4. Proof of Identity

You will be asked to provide evidence of your identity, this can be done in a number of ways:

  • Passport 
  • Driving license (full UK photocard driving license)

Both of these must be current and valid. If either has expired then they must be renewed before using it as your proof of identity. If you are using your license your address must be up to date, if it shows your previous address it must be updated before it can be accepted.

5. Credit report

It may be beneficial to contact a trusted provider to give you an up to date credit report but do not get too worried about this! The score is only an indicator as different lenders interpret your credit score differently. You can check your credit score on https://www.equifax.co.uk/ or https://www.experian.co.uk/ 

(Small tips for improving your credit score: avoid overdrafts and do not take pay-out loans!)

  •  Residency – if you are not currently a UK resident then you may need to provide proof of residency. This can be shown in a number of ways; permanent residence card, residence card, a family of a settled person visa, UK ancestry Visa), 

(Small tip: proof of your visa is normally held in your current or old passport.)

  • You may be asked to provide details on any current car finance, overdrafts, any outstanding loans, unpaid credit card bills, and any other outstanding credit or loans. Anything that will show the broker your current financial state.

Final tips! 

­čí¬ Don’t send screenshots of documents as these won’t be accepted! Make sure you send high-quality photos with no additional items in the shot. The document must be laid flat with no flash and text clearly visible! 

­čí¬ Clearly label each document when you send it to us to make it easier for us to keep a record of your application.

­čí¬ You can use your driving license as proof of identity OR proof of address, however, it cannot be used for both. 

We know that the mortgage process can seem hard and overwhelming but we are here to show you that the journey can be a simple one for you, by explaining every step of the way. By taking baby steps like assembling the documents you need, it can make it easier down the line for when you begin to apply for a mortgage. 

Ready to start your mortgage journey?

Take the first steps towards mortgage joy and submit your mini-application today!

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