The documents you’ll need when applying for your first mortgage

Applying for your first mortgage is an exciting but slightly nerve-racking time. Knowing more about the application process will definitely help you feel in control and reduce the risk of delays. 

You’ll be asked to prove who you are, where you live and how much money you have in quick succession. We’ve outlined the documents you’ll need below. Don’t forget, mortgage lenders like originals, so a quick screen grab often isn’t enough.

Prove who you are

You’ll need to show photo ID to your mortgage lender or financial adviser for background matching, anti-money laundering and fraud prevention. Be prepared to show original copies of:

• Your driving license

• Your passport

Prove where your live

Your mortgage lender needs to see proof of address as part of mandatory checks. Any paperwork you supply should show your address and be from the last four months. Documents should be official PDFs downloaded from your account or paper statements sent by post, and can include:

• 
  A utility bill

• A bank statement 

Prove what your earn

If you are employed, payslips are crucial when applying for a mortgage as the lender will need to see what you earn will cover the monthly repayments. Expect to provide:

• Three months’ worth of payslips, with your employers name, logo and address clearly visible

• Up to six months’ of payslips if you want bonuses and overtime to be included in your affordability calculation

• A P60 

If you are a sole trader, Limited Liability Partnership (LLP), a Private Limited Company (Ltd) or contractor, be prepared to substantiate your earnings in a different way. You may be asked to provide: 

• A SA302, downloaded from HMRC

• Tax calculations and overviews

• Business bank statements 

• Signed contracts and/or a contract extension letter

• Finalised accounts

Prove your additional income

Some lenders will use other income streams in their affordability calculations. Types of income that may be considered include secondary income declared to HMRC, Universal Credit, Child Benefit, Personal Independence Payment (PIP), Disability Living Allowance (DLA), Carer’s Allowance, Attendance Allowance, Employment and Support Allowance (ESA). 

Dividends from stocks/shares/bonds/gilts and state/private pension might also be considered. You should prove any additional income by showing:

• Monthly bank statements from the last three months 

• An official letter provided by the Government, the income provider or the financial institution

Prove you’re good with money

As well as running credit checks, mortgage lenders often look for good everyday money habits. Bank statements will show what’s coming into your account is more than what’s going out. Among other things, lenders check bank statements for substantial regular outgoings (such as childcare or school fees), unmanaged gambling and debt, and high volumes of active buy-now-pay-later (BNPL) agreements. Typically, you’ll be asked to show:

• Three months’ of bank statements

Prove your deposit

The majority of mortgages require a deposit and you’ll need to prove you have enough saved. Lenders will want to see:

• A bank/savings account statement 

• ISA, LISA or Help to Buy ISA statement 

• If you’re getting help with your deposit from friends or family, you’ll need a signed Gifted Deposit Letter (or Deed of Gift)

Time spent gathering these documents now will speed up your mortgage application and help you secure your new home quicker. If you need anything explaining, do get in touch.