So, the chances are you are either about to buy a house or you need to remortgage. Maybe you are worried about what information you will need to get together before you can get the mortgage underway. In this guide, we will set out everything you need to make the process of getting a mortgage as smooth as possible.
The information you need varies depending on which bank or building society you are getting a mortgage from however here is a list of information that will always be required from you as a starting point: –
- Driving licence
- Proof of name & address
- Proof of income
- Proof of deposit
- Latest 3 months bank statements
Being prepared before applying for your mortgage
This guide will take you through each of the types of information you will need to gather before you apply for a mortgage. We also have a few tips about extra information each individual bank and building society may ask which will help you to make sure all your documents and finances are in order.
Table of Contents
Passport – This is the main identification required by most banks and building societies. Make sure your passport is in date as lenders will not accept an expired passport.
Driving Licence – Some lenders will need this identification in addition to your Passport. Again, you will need to make sure it is in date however a detail that is often overlooked is the address. The address on your driving licence needs to match the address you are currently living in. If your licence has the wrong address now is the time to send it off to the DVLA to get it updated!
Proof of name and address – Lenders will need to see proof of where you are living at present. The way they will be able to verify this is by seeing one of the below:-
- Bank statement showing your name & address
- The current year’s Council Tax statement
- A utility bill from the last 3 months
Proof of income
If you are employed most lenders will require payslips from the last 3 months. If you are paid monthly this will be the latest 3 months and if you are paid weekly, you will need to provide the latest 13 weeks payslips. Banks and building societies will not accept a missing month or week so now is the time to speak to your payroll or HR department to request a further copy should you be missing any.
If you are self-employed you will need to provide your last 3 years tax returns and tax year overviews. You should be able to access your tax returns these by visiting the HMRC website.
If you have been self-employed for less than 3 years don’t panic as some lenders will accept 2 years and a few will even accept 1 year’s accounts.
Proof of deposit
The lenders will want to see that you have your deposit ready and will want to see the bank statement or savings statement evidencing this. If your parents are gifting you the deposit lenders will require a letter from them confirming that it is a gift and that they do not expect it to be repaid. If you are a first time buyer, here is a more indepth guide on information that will help you prepare before getting your first mortgage.
Latest 3 months bank statements
Lenders will want to see the latest 3 months bank statements. They will need to be complete statements without any pages or days missing. The main reason lenders require your bank statements is to see the amount of income being paid into your bank account. Although most lenders will ask for 3 months bank statements, they may occasionally ask for 6 months especially if you are looking at a higher loan to value mortgage
Loans and credit cards
Although you won’t need to show statements for any loans and credit cards you may have, you will need to know the exact amounts outstanding and the monthly payments on each.
Will I need original documents and ID or will a copy be OK?
Your mortgage broker and solicitor will need to see your original documents and ID which they will take copies of.
Other important information you really need to know!
Stop Gambling – Now is a good time to stop any online gambling as this will appear on your bank statements. Lenders are very against any type of gambling and it could stop you getting a mortgage!
Get on the electoral roll – Banks and building societies will need proof of where you have lived for the last 3 years. The most common way they do this is by finding you on the electoral roll. An easy way to tell if you are on the electoral roll is if you have had any poll cards delivered to you at that address. If you are unsure, contact your local authority and they can confirm this for you.
Get your finances in order – Now is the time to get all your finances in order. As part of a mortgage application the lender will be looking at your finances through a credit report company like Experian or Equifax. This will show all your financial accounts, loans, debts, utility accounts and bank accounts. Lenders will not want to see any late payments on any of these. In relation to any overdrafts you may have, banks and building societies will not want to see you going over this and ideally not in it.
Get yourself a mortgage broker
Now is a good time to get yourself a mortgage broker. Not only will they be able to shop around the whole mortgage market to get the best rates and deals, they will also be able to spend time with you to ensure you are ready and prepared in advance of applying for a mortgage.
Ask your family and friends if they can recommend a mortgage broker that they use. Alternatively, you can Google No Fee mortgage broker which will find you a list of mortgage brokers that do not charge for their services. Make sure you have a look at their website and their Facebook page. Read their reviews and make sure they are a mortgage broker that offers a great service.
So, how long does a mortgage application take to be approved?
Although in some circumstances this can take as little as 24 hours, you should expect to wait about 2 weeks on average while the mortgage lender gets the property surveyed and underwrites your mortgage application. Find out a breakdown of the mortgage process and to find out how long a mortgage application takes to be approved.
Summarising the information you need to get a mortgage
Planning your mortgage well in advance is always a great idea. It will help you to make sure all your finances are in order and it will allow you time to get any relevant documentation together. This will ease any pressure on you and will ensure that it all goes smoothly when the time comes to arrange a mortgage.
At YesCanDo Money we are an independent family-run mortgage broker. We are a no-fee mortgage broker as we are paid by the different banks and building societies and therefore do not charge you a fee. We have always got time for a chat so give us a call or drop us a line to see if we can help you with your next mortgage.