In this guide we’ll explain what documents might be required to support your mortgage application. Each mortgage lender is different and will depend your individual circumstances.
Proof of Income: Employed Documents
- Payslips – latest payslip to prove basic salary
- Overtime, Commission or Bonuses, provide 3 months payslips to show a track record of this additional income.
- Annual Bonuses, provide 2 years history with the same employer for lenders to use this for affordability
Proof of Income: Self-Employed Documentation
- SA302s – these are a receipt of what you have submitted to HMRC for tax purposes. This will show all income received via Self-Employed source if you are a sole trader OR if you are a Company Director it will show your Dividend payments for that tax year. This your ‘annual payslip’ for self employed.
- Tax Year Overviews -shows tax that is due and payable. It will show any unpaid tax from previous years that might impact affordability or credit conduct affecting the lenders decision to agree a mortgage
- Company Accounts / Accountant Reference – Some lenders that may still require Company Accounts or an Accountant Reference to confirm more details for Ltd Company directors ie. shareholdings, shareholder funds and company net profits. This is to check the financial health of the Company Directors business and that they are able to continue paying themselves the income from their business OR if the Director is not paying themselves a salary and leaving their funds in the business we may be able to use Company Net Profit for affordability as the income is there to draw, the Director is simply not drawing an income from the business.
Bank Statements
Bank statements are required to evidence your regular income being credited to the account against the proof of income provided, to support the mortgage affordability. In addition they’ll also want to see regular outgoings i.e. bills and expenditure, whether you regularly use an overdraft and the overall credit conduct of your account.
Proof of Deposit
This is required for Money Laundering Purposes and will also need to be provided to your solicitor.
- Savings, provide a bank statement of that account assuming the funds have been in that account for at least 3 months, if not you may be asked to provide more history to trace the source of funds.
- Gift, provide a Gift Letter from the Giftor to evidence the amount being gifted and that person will hold no charge on the property.
Proof of ID
In majority of instances lenders and brokers are able to electronically verify your ID; however this is not always the case, it’s not uncommon to require a copy of the Passport or Driving License or other form of Government Issued ID document to provide your identity.
Proof of Address
As part of your application the lender will require 3 years address history to complete a credit check. To verify your address you may be asked to provide an up to date proof of address document e.g. Utility Bill or Council Tax Bill dated within the last 3 months