Applying for your first mortgage is a stressful activity at the best of time. There are however some things you can do to quicken the process and reduce the stress of the wait for approval:
It helps to be prepared with the information you will need to support your mortgage application. You may be asked for any of these documents at some point in the process:
- You need to prove your identity which is usually a valid passport or photo driving licence.
- If you are employed then your P60, end of tax year certificate, and typically your last three payslips.
- If you are self-employed then your Self-assessment tax calculation form along with the corresponding Tax Year Overview, which is a summary of your income that has been reported to HMRC, acts as your earnings for a tax year. Your accountant can provide this for you. You may need to provide two or three years accounts from your accountant as well.
- Most lenders ask everyone for at least three months current account bank statements. These statements will need to cover a FULL three months, and any statement of benefits received. Some lenders ask for utility bills from those who have lived independently before.
- You may also need to show your outgoings, including how much you have borrowed on credit cards or other loans, as well as general living expenses, insurance policies, childcare and travel.
- One thing to be aware of is that if you are providing printouts of online bank statements they need to be in ‘pdf format’ and must show the name of the bank, sort code, account number and your name & address. If you cannot download copies then you may need to get hard copies from your bank; if you do ask them to certify the statements for you.
- You may need to provide proof of savings. The lender would like to see a build-up of funds, so obtaining statements from up to a period of six months or as far back as possible from your savings account may be needed.
- Remember to have your solicitor’s details and those of the property you are looking to buy to hand.
- It may also be worth looking at your credit report, particularly for first time buyers who may not have had many credit agreements. This will enable you to be aware of and correct any inaccurate information before the mortgage provider looks at it.
The final piece of advice is to keep in contact with your solicitor and mortgage advisor. By communicating regularly, you can keep the process on track and smooth out any bumps that occur.
I am always happy to review your specific circumstances so get in touch if you need some advice.
Your property may be repossessed if you do not keep up repayments on your mortgage.