When meeting with your mortgage broker, they will most likely need proof of your ID, proof of address, proof of income, bank statements, proof of deposit, and proof of your residency and nationality.
Remember that throughout the process, your mortgage broker may want to see more documents depending on the individual requirement of the lender they submit your application to. Below is a detailed overview of the documentation you need to prepare.
The most common ways to verify your identity are to use a valid passport, birth certificate or a full UK driving licence. But other forms of photo ID are also enough:
- Valid Shotgun Licence or Firearms Certificate issued by your local police force
- Valid EU or EEA Member State Identity Card (Swiss Member Card also accepted)
- Identity Card issued by the Electoral Office for Northern Ireland
- Valid Blue Disabled Driver’s Pass issued by a UK Local Authority (Council)
Your broker will also need proof of your address. This is so they can do their anti-money laundering checks. You should provide your latest utility or council tax bill.
To prove your current address, any of the following documents are accepted:
- A driving licence showing your current address
- Council tax bill
- Utility bill dated within the last three months
- Bank statement dated within the last three months
You can show the following documents to your broker as proof of your income:
If you’re employed
- Payslips – from the last three months
- A P60 – to have an overview of your annual income
- Copy of your latest contract
If you’re self-employed
- Tax returns – last two years
- Tax calculations – last two years
- Tax Year Overviews – last two years
If you’re a limited company director
- Limited company accounts – last two years
You’ll need to show your latest payslips if you’re in permanent employment. You can either scan them or share them in the online format, as long as you provide all the information. Depending on how often you’re paid will determine the number of payslips you need to provide. If you’re paid monthly, you will most likely need to show three payslips. If you’re paid weekly, you may have to show 6-12 weeks’ payslips. Most likely, you will also need your P60 if you’ve earned bonuses, commission or overtime.
If you’re self-employed, you can use your HMRC tax calculations and overviews as proof of income. Or if you use an accountant, some lenders may accept an Accountant’s Certificate. If you’re a contractor, you may need to provide other evidence. An employment contract and evidence of accounts that are signed by a qualified accountant may suffice.
You can also use other forms of income towards your mortgage, like benefits or government allowances, private pensions, state pensions or maintenance payments. A letter showing that you’re granted these or bank statements to prove the payments should be enough.
You will also need to bring a bank statement to your meeting with your mortgage broker.
Your bank statements should show up to three months’ transactions. But your broker may want to see up to six months depending on your circumstances. Your statements will show your income and expenditure and help your broker to understand your budget for your mortgage and related insurances.
You can print your statement at home if you use a banking app or have online banking. Alternatively, you can visit your local branch to get them printed out for you.
Having a broker look over your bank statements may seem daunting and make you feel nervous. But advisers are trained to treat private documents with confidentiality and be non-judgemental when assessing your finances.
If you have saved up for your deposit, you can show bank statements. If it’s a gift, you may be asked to fill in a form to provide further details or provide a gifted deposit letter from the donor. Be careful about sending in the donor’s bank statements as some lenders may deem this a data protection breach if they are not an applicant. It’s important to know, that some lenders only accept gifted deposits from family members and may not accept them from friends.
If you’ve moved to the UK from a different country, you will need to show proof of residency and nationality. As evidence, you can use any of the following:
- Residence card
- Family of a Settled Person Visa
- UK Ancestry Visa
- Any other types of visas
- Home Office letter
- Biometric residence permit
- A Tier 1 or Tier 2 visa
- Spousal or ancestral rights
You might need to provide other documents for your residency, your income or your expenses. It’s also possible that you will need to provide additional information on other loans and mortgages, overdrafts, unpaid bills, insurance policies taken out, such as life insurance and information about your solicitor, and the seller who you’re buying from, like a property developer or private seller.
Your mortgage broker will check that you have all the right documents before applying to the lender. They will notify you if anything is missing. This means that with their help, you can ensure your application has all the right information first time around.