What will I need to get a mortgage? image

What will I need to get a mortgage?

If you have plans to purchase a home, understanding the ins and outs of mortgages can be invaluable. With the right insight and preparation, you don't have to wonder 'what will I need to get a mortgage?'. Knowing exactly what you need and what you should consider can make finding a suitable mortgage far less stressful.

Whether you're weighing up your mortgage options or thinking about applying for a mortgage on a property, we've covered all you need to know to get started. Read on for all the details now:

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What do I need to know about getting a mortgage?

Before we get into the specific details about the paperwork, having some background on what you need to know about getting a mortgage can be valuable. For most mortgages, you'll need to provide a deposit of between 15-30% of the value of the property, as well as proof of income that meets the checks required by mortgage lenders.

It's important to consider which mortgage is best for you instead of choosing the first option you find. Different lenders have different requirements and may offer different options for you, so using a qualified mortgage broker and doing your research is an excellent place to start.

Getting insight into what to expect from the mortgage process makes it far easier to reduce the stress and challenges involved in complex application processes.

What will I need to get a mortgage?

When you apply for a mortgage, you'll need to submit specific documents to your choice of lender as proof of your income, outgoings, and eligibility for a mortgage. Having these prepared in advance can help make your mortgage application go smoothly. These include:

Details of the property you'd like to purchase

While you won't need to let your lender know the choice of wallpaper or how many bedrooms a property has, they will need to know the value of the property itself. This amount helps lenders determine whether you have suitability for their mortgages based on the specific cost of the property you'd like to buy.

Bank statements and financial information

Most lenders will want proof of your outgoings and financial situation before they approve your mortgage. In most cases, you'll need to supply bank statements for your current account covering the last three to six months. You'll also need to provide utility bills, proof, and benefits, and in some cases, a budget detailing your outgoings and any debts you hold.

Proof of employment and payslips

Lenders want to confirm that the salary and income information you provide is correct. Typically, you'll be asked to provide at least three months of payslips for your current business, as well as a P60 from your employer to prove that you work where you say you do. If you're self-employed, we've covered what you'll need to get a mortgage below.

A passport or other form of ID

Lenders use identification to confirm you are who you say you are. A driver's license, passport or any other kind of formal identification can be used for this.

A good credit score if possible

While a credit score isn't something you can gather or collect ahead of your mortgage application, having a good credit score can be beneficial in finding a suitable deal for your circumstances. Take the time to find out your credit score and figure out if it's worth working to improve that score before applying for your mortgage.

Information on your deposit

If you are placing a deposit down for your mortgage, as most buyers are, you'll need to provide details of that deposit to your lender. This percentage is reduced from the overall mortgage value, so you must be accurate in the deposit you can offer. The more significant the deposit, the less you'll need to borrow, which may make you eligible for specific deals.

What will I need to get a mortgage if I'm self-employed?

If you are self-employed, there are a couple of key differences in what you will need to get a mortgage. Instead of providing information from an employer and payslips, you'll need to find the following:

Your annual tax return

Your SA302 yearly self-employment tax return should be included alongside your other documentation to prove your annual income. If you file taxes yourself, you can download this from HMRC or ask your accountant for a copy.

Two to three years of bank statements

Many mortgage lenders will request up to three years of accounts for self-employed individuals. If you have been self-employed for a shorter amount of time than three years, speaking to a mortgage broker or professional can give you insight into the best way forward for your application.

What other preparations should I make before applying for a mortgage?

Before you apply for your mortgage, it's crucial to have a good understanding of what to expect from your application. Using a mortgage calculator can give you an idea of what options may be available to you, as well as what your monthly payments would be like for a property of a specific value.

Alongside preparing your paperwork and information, it's also vital that you don't make any sudden changes to your finances, credit, or employment as you apply for your mortgage. Most lenders will prefer to approve mortgages for people who have been with one employer for a longer time, though this isn't a deal-breaker every time.

However, the state of your finances can make a significant difference in your chances of approval. For example, taking out car finance or putting a large purchase on a credit card can directly have an impact on the mortgages that may be available to you. If possible, hold off on significant changes and credit purchases until the mortgage process is complete.

Are you planning to apply for a mortgage? Our specialist team are here to help you. Get in touch with our team at WIS today for free advice on mortgages.

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As a mortgage is secured against your home/property it may be repossessed if you do not keep up with the mortgage repayments.

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