UK Mortgage Applications – What You Need To Prepare

UK mortgage applications, whether you’re a first time buyer, or looking at moving homes, applying for a mortgage can be a daunting task. This is why our team of local mortgage advisors have put together this handy checklist of what you will need to prepare ahead of your mortgage application.

Previously, we’ve discussed 5 steps to increase your chances of mortgage approval. However, we know that applying for a mortgage can mean a lot of paperwork preparation and information sourcing. Read on to find out what you will need when applying for a UK mortgage.

UK Mortgage Applications – The Key Takeaways

When applying for your UK mortgage, there are several elements to consider and provide documentation for, including:

• Learning how to apply for a UK mortgage
• Proof of identity
• Proof of employment status
• Bank statements/proof of deposit and monthly income
• Why so much documentation is needed
• Help with your mortgage application

How To Apply For A UK Mortgage?

When looking to purchase a property in the UK, more often than not you will need to secure a loan to purchase the property, commonly known as a mortgage. In the UK, when you’re going through the mortgage application process, banks and other lenders will require several documents to help confirm your status, and identity and back up the information you’re providing, before they confirm if you’re eligible for the mortgage.

We’ve compiled a list of items that lenders will likely ask you to submit, including but not limited to:

Proof of identity

• Who you are – this can be a driving licence, passport or other form of formal identification
• Your current address – proof of address would need to be provided, i.e a utility bill
• How much you earn – proof this would be with pay slips from the past 3-6 months
• If applicable how much deposit you have and how you came to accumulate it ( savings, inheritance, investments or financial gifts)

The above forms or identity can be provided to the lender of your choice when applying for a mortgage or decision in principle.

Find out more about a mortgage in principle in our blog post: ‘What is a mortgage in principle, how to get one and why you need it.’

Proof of employment status

If you’re self-employed, employed or on maternity leave, you can still apply for a mortgage, the process may look a little different for you. Find out more about employment status and mortgage applications in our blog posts:

• Your self employed mortgage guide
• Maternity leave mortgage applications – FAQs
• First time home buyer? Here’s everything you need to know

For most lenders, before they approve your mortgage application, they will first need to have proof of permanent employment, normally in the form of a payslip. The key information looked for here is:

• Employee name must match the name on the mortgage application
• Pay date and tax period
• Net pay
• Gross pay, ie basic salary, contractual pay, salary or notional salary
• Any bonuses, overtime or commission work – your lender may ask for additional payslips which highlight these
• Any additional workplace employment allowances such as vehicles, tools, location or shift
• If an address is on the payslip, it must match the address on your mortgage application
• Employee name – if your payslip doesn’t include your employee name, you may need to provide a P90
• Any outgoings that you’ve mentioned in your application, ie student loan repayments, childcare vouchers etc
• Please note, if you also receive additional income alongside your salary, such as universal credit, child tax credit, or living allowance. You will need to provide the last three months of bank statements showing the payments. You may also need to provide proof of the benefit being paid and your income position in the form of letters.

Bank statements

When applying for a UK mortgage, lenders will often ask to see your latest bank statements, depending on your circumstances these can range from one month’s worth of statements or six months. Paper and online bank statements will often be accepted. However, with online statements, some lenders may ask that the HTTP address be included, so they can confirm the statement has come from a trusted source.

The key information needed from these statements includes:

• Your full name, initials and surname with your address – these must match the address and names provided on your mortgage application
• The bank or Building Society logo
• All pages of the requested statements
• Bank account and sort code numbers
• A running balance
• If the statement is from a current account, the statement must include any payments leaving the account
• Outgoings must match those declared on the application, loan repayments for example

Top Tips:

• Ensure your name, address and job title are correct without any spelling errors across all of your documentation
• Get multiple copies of the aforementioned documents as your conveyancers and solicitors may also require them
• Set up online banking to make it easier for you to obtain the relevant documents

Why Is So Much Documentation Needed For Mortgage Applications?

When applying for a mortgage, it can be time-consuming to collate all of the relevant paperwork, especially if you’re purchasing the property with a partner (so you will need to provide the information twice for each person applying for the mortgage).

However, all of the above information is required from your lender for a wide range of reasons, including:

• Money laundering prevention – the UK has a range of money laundering regulations in place to help prevent criminals from utilising financial products, such as mortgage loans, for their own financial gain. Therefore lenders will request numerous proof of identity documentation.
• Proof of expenses – lenders will want to protect their investment and ensure that you will be able to meet the required monthly repayments. Which is why they require proof of your outgoings and income.

Please note, that in some cases, even when you’ve provided all of the relevant information for your mortgage application, your application can still be disapproved. For more information and what to do if this happens, see our blog post: ‘6 reasons why your mortgage application was refused.

Need Help With Your Mortgage Application Process?

If you’re unsure about any of the documentation that you need to provide for your mortgage application or want to know more about the mortgage application process – our team of award-winning and local mortgage advisors are on hand to help.

For more information, or to book your initial free consultation, contact our team at admin@thelevelsfinancial.co.uk or call our team on 01458 772 040.

For more information, or to find out more about the range of mortgages on offer, see our blog posts:

• A guide to shared ownership mortgage
• A complete guide to UK mortgage types
• A guide: first time buyer mortgage advice
• Fixed mortgages – a guide
• How to save for a mortgage in the cost of living crisis

Because we always have your best interests at heart, you need to know…
Your home may be repossessed if you do not keep up repayments on your mortgage.
There may be a fee for mortgage advice. The actual amount you pay will depend upon your circumstances.
The fee is up to 1%, but a typical fee is 0.3% of the amount borrowed.