We are all familiar with the quote, “by failing to prepare, you are preparing to fail”. Not usually a phrase associated with mortgages, but oh-so relevant when it comes to buying a new home currently.
Mortgages are in a constant state of flux. Last month the Bank of England issued another base interest rate increase, to 1.75%, sending overall mortgage rates up again. So, what does this mean for your mortgage if you are thinking about, looking for, or about to apply for one?
Don’t let your best mortgage rate slip away
Imagine talking with your mortgage broker on a Monday morning, and learning of a mortgage product, with an agreeable rate for you. But come Friday that rate has increased to the point whereby monthly mortgage repayment figures have gone up by £400! Well, we have indeed had incidents whereby this has happened. And it’s happening to varying degrees weekly. So we are URGING mortgage-seekers across the UK to be ‘mortgage document ready’.
What mortgage documents do I need to prepare?
Not only will preparing all your mortgage paperwork ready in advance help your mortgage application run smoother, it is highly likely to save you money right now. Here is a quick list of the mortgage documents you need to prepare for your mortgage broker, depending on your circumstances:
Proof of ID
Lenders need to know that you are, who you say you are, and that all your details match up. To prove this, you will need to prepare and supply the following documents:
Current passport or driver's license
Most recent utility bill
Full bank statement or credit card bill issued within the last 3 months
To avoid further delays, all documents listed above should detail your current name and address, and be in date. If you are buying with someone else and you already live together, you'll need their name to be on at least one of the utility bills, too.
Proof of income
Lenders need to assess whether you can afford to repay the loan you are applying for. Depending on the type of income you receive, you may need different kinds of paperwork.
If you are in PAYE employment:
Payslips from the last three months
P60 documents if you have recently started a new job
If you are self-employed:
Self-assessed tax return forms (SA302) and tax year overviews
An accountant’s certificate
Any other sources of income:
P60 and/or 3 month’s payslips
Most recent HMRC letter
Most recent Department of Work and Pensions (DWP) letter
Letter from local authority
Pension payslip
Proof of Expenses
Lenders require an understanding of your level of outgoings before approving your application. To prove this, you will need to supply:
Full bank statement dated within the last two months
It’s also important to add that as you are applying for a mortgage in the UK, all the documentation should be provided in English.
Need some help with your mortgage application?
Applying for a mortgage can be a tricky process if you haven’t done so before. Talking to a trusted mortgage broker can help you get clarity on how much you are eligible to borrow, and all the documentation you need to prepare, as part of the mortgage process.
Talk to Tony
Talking to an independent mortgage broker will give you an idea of what the current most suitable mortgage rates are for your individual circumstances. By booking a free online mortgage appointment at a time that suits you, you can discuss your individual mortgage requirements and gain the knowledge you need, in order to make the right mortgage decision for you.
Your home (or property) may be repossessed if you do not keep up repayments on your mortgage or any other debts secured on it. A fee may be charged for mortgage advice. The amount will depend on your circumstances.
Skyline Mortgage Consultants Limited is an Appointed Representative of The Right Mortgage Ltd, which is authorised and regulated by the Financial Conduct Authority. Skyline Mortgage Consultants LTD registered in England and Wales Number 8157062. Company Registered Office: Heathmans House, 19 Heathmans Road, London SW6 4TJ