Whether you’re a first time buyer, home mover or professional land lord there are many areas that will require consideration…. Unfortunately having the deposit is only the first of many requirements.
In order to help you understand what you may be required to evidence when the time comes to apply, we have come up with a generic list of items that may be requested from you as well as some tips to aid your mortgage eligibility, as affordability, credit scoring and income all play as big a part in your application as the deposit.Boost your eligibility by:
- Checking your credit file and boosting your score- no credit can have the same effect as poor credit! Check for errors and tie up loose ends.
- Address – make sure your address on your bank statements, credit file and payslips is current. Also, ensure you are on the electoral role – this can also boost your credit score and allow the lenders to verify your address.
- Manage your payments and spending- Missed or default payments, CCJ’s (County Court Judgements), payday loans and a clear betting patterns that show on your credit file and bank statements can all decrease your chances of getting a mortgage.
- Pay off your credit cards in full each month and close any unused cards.
- Stay out of your overdraft.
Before considering/ applying for a mortgage it is important to establish whether you will be able to provide evidence of all types of income, residential history, bank statements and much more. Unfortunately, during any part of the mortgage application process a Lender holds the right to request any further documentation to support your case, therefore, by ensuring from the outset that you have everything you may need can keep the application to offer process, as simple, fast and efficient as possible.
Examples of what a lender may ask you to provide:
- Your latest 3 months’ payslips/evidence of bonuses and commission
- Your latest 3 months’ bank statements from business and personal accounts, please be aware many lenders won’t accept internet banking statements and will require original copies from your banking branch
- Your latest 3 years’ accounts, tax returns, tax calculations and Accountant’s Certificate
- ID documents (ensure your licences/passports are in date!)
- Proof of address documents (bank statements, utility bills etc.)
- National insurance number
- Proof of your deposit – including any bank statements or a gifted deposit form to be completed
All of that being said, a mortgage is not a ‘one size fits all’ sort of deal. Other than the above, you may encounter different requests or hurdles during your application. However, once you’ve got all on the above in place you should be ready to get in contact with your Broker and start the exciting process of purchasing or remortgaging a new home/ property.