What will you need for your mortgage application?

When it comes to speeding up your property sale, being prepared certainly helps, and this couldn’t be truer when making a mortgage application. With the average mortgage application taking between four to six weeks, throwing additional spanners in the works can make the process of purchasing your dream home longer and more exhausting.

In this blog post, we share our advice on how to prepare for your mortgage application so you can keep the entire process on track and get those keys to your new property even quicker.

A good credit history

As one of the top reasons for a declined mortgage, getting your credit score in check is a task every prospective property owner should take on, preferably long before they begin their search for their first or next home.

Whether you have a poor credit history or no credit history at all, it’ll make for vital reading for your lender. There are several steps you can take to improve your credit score in preparation for your mortgage application, including registering on the electoral roll. If time isn’t on your side, you’ll want to take this advice from leading credit agency Equifax:

“Improving your credit score in 30 days can be challenging. However, it’s not impossible. If you’re looking to boost your score, it’s wise to first focus on paying all your bills on time, as payment history is a significant factor affecting your credit score. Lowering your credit utilisation, or the amount of credit you’re using relative to your credit limit, can also help. You can do this by paying down outstanding balances as far as possible.”

Proof of income

To progress with your application, you’ll need to provide proof of any income earned through employment or self-employment. Employed applicants must provide three months of pay slips, bank statements and/or their last P60 where applicable. 

Self-employed applicants need to supply proof of income across a longer period, usually two to three years. This can be done by providing professionally prepared accounts or the SA302 tax calculations generated every time you submit your Self Assessment return. You’ll find the last four years of SA302 forms in your HMRC online account.

Details of outgoings

As well as your income, would-be lenders will want to know how you spend your money, and what your current financial commitments are. With this in mind, they’ll ask for details of your monthly expenditure for the last three to six months and associated bank and credit card statements.

Proof of identity

Your identification will also need to be verified at this stage. Lenders generally require two documents as proof of your current address, such as a recent bank statement; gas, electricity or water bill; council tax bill; or credit card statement. You can provide your passport or driving licence to confirm your identity as long as this documentation is up to date.

Your deposit

Proof of your deposit should be provided during the mortgage application. If you have had help from the bank of mum and dad, or another loved one, courtesy of a loan or gifted deposit, you’ll need evidence of the available funds and confirmation of their intention to pass this on.

You will also need to provide details of your solicitor or conveyancer and estate agent to ensure the property purchase can continue once mortgage approval has been granted.

Independent advice

You don’t have to prepare for and progress your mortgage application alone. At The Mortgage Bureau, our independent advisors are here to support you at every stage, including during your mortgage search and application. Find your local mortgage advisor today to get started.