What supporting paperwork does a mortgage lender need?

In order to progress a mortgage application as quickly and smoothly as possible, collect and prepare as much documentation in advance of your application.

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What do mortgage lenders need? You should gather documents to prove your address, identity, income, bank statements, benefits correspondence and deposit.

You will not be able to use the same document to prove both your address and identity.

Acceptable forms for proof of address:

• Driving licence, not expired and showing current address
• Secondary bank statement that differs from the account your salary is paid into
• Utility bill – electricity, gas, water, landline telephone
• Current Council Tax bill
• Current PAYE notice of coding
• Benefits award letter

Car insurance, TV licence and mobile phone bills will not be accepted.

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Documents providing proof of identity include:

• Passport
• Driving Licence
• Birth Certificate
• Marriage Certificate
• Residence permit

Some alternative documents may be considered

• Employer’s photographic identity card with employee’s signature
• Shotgun/Firearms Licence
• Blue (disabled) parking card

Documents to prove your income – what do mortgage lenders need?

• Pay slips covering previous three months
• P60 to show last year’s earnings
• SA302 covering the last two years if self-employed

If you’re paid monthly, provide the last three months’ pay slips. If you’re paid weekly, you need 13 weeks of pay slips. Self-employed individuals need three SA302s. If you are an employed director of the company, accounts will be required.

You’ll also need to provide bank statements from all accounts for the previous three months. Some lenders may require postal copies of Internet bank statements. If you intend your tax credits to form part of your income, you will need the latest award letter.
For proof of state benefits, your most recent letter will be needed.

For proof of deposit, provide a savings statement, passbook or letter confirming location of the deposit.

If your purchase involves shared, joint or right to buy, it might be worth investigating specialist advice from a company outlining What do mortgage lenders need? and offering an umbrella service.

It may also be useful to obtain a copy of your credit report from a reputable agency. This will detail any late credit payments, defaults or CCJs, which are County Court Judgements that may result in your application being unsuccessful. Check all the details, especially your addresses over the previous three years and your inclusion on the electoral roll.

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