The 7 documents you’ll need when applying for your first mortgage

What documents are required when applying for your first mortgage? The answer is, quite a few. Knowing what your lender wants to see in advance will give you some breathing room to request letters, download PDFs and find paper copies. 

The good news is nothing is taxing or hard to get hold of. Use this list and your mortgage application will get off to a speedy start.

1. Photo ID: you’ll need to prove who you are and lenders will want a form of ID that has your photograph on. An in-date passport or driving license will be readily accepted.

2. Proof of address: you’ll need a document that shows your fixed address. A lender will not normally accept a mobile phone bill as this is tied to a person, and not a property. Acceptable documents include a utility bill, a council tax bill, a document from HMRC or a bank statement.

3. Bank statements: as well as proving your address, bank statements are vital when applying for a mortgage. A lender will be able to see your wages being paid in, note if you regularly rely on your overdraft and establish any expenditure that may jeopardise your ability to make mortgage repayments. 

Usually your lender will want two or three bank statements. If your income fluctuates or you want overtime and bonuses to be included, you will need to supply more bank statements.

A bank statement will also be required to prove you have saved enough of a deposit. Supply the statement that applies to where the money is held: this could be a savings account statement or a statement from an ISA, a LISA or a Help to Buy ISA.

4. A gifted deposit letter: if a family member or friend is making a financial contribution towards your deposit, you’ll also need a signed gifted deposit letter. This confirms the person giving the money has no financial interest in the house you are buying and that they are making a non-repayable gift rather than a loan.

5. Payslips/P60s: if you’re employed, you’ll need payslips and your P60 to prove what you earn.

6. Tax details: if you're not employed, you will need to prove your income in a different way. Sole traders, contractors, Limited Liability Partnerships (LLPs) and Limited Companies (Ltd) will need to supply some or all of the following: SA302s, tax calculations, print outs from HMRC’s website, tax year overviews, signed contracts and/or a letter from a finance director/accountant. 

7. Proof of benefits: some lenders will take benefits into account when working out what you can afford to borrow. You’ll need evidence of this income. This can be proven by showing monthly statements from the provider, bank statements that show the benefit being paid into your account or an award/entitlement letter. 

Benefits can include those awarded by the state, such as Universal Credit, Working Tax Credits, Child Tax Credits, Employment Support Allowance, Widowed Parent's Allowance, Adoption Allowance, Disability Living Allowance or Personal Independence Payment). 

Benefits can also be income generated privately. This can include state or private pensions, as well as interest or dividends from stocks, shares, bonds and gilts.

Document formats a lender will accept

Lenders are obliged to carry out anti-money laundering and anti-fraud checks, meaning original copies are largely required. When it comes to bank statements, utility bills and tax overviews, dig out paper copies or download official PDFs from the relevant websites. 

Don’t be tempted to take screen shots as these will likely be rejected. If you scan any paperwork in, don’t crop or block anything out - it will look suspicious and the file may be rejected.

All official documents, whether digital or paper – should show your name and ideally your address, the company’s name, logo and address, and the date.

How recent your documents are matters

Your lender will want to see your most recent financial situation – statements from 18 months ago won’t cut it. Supply your most recent bank statements and tax overviews.

We’re here to support you during your first property purchase. Contact us if anything about the mortgage process is unclear, and register with us to see the latest homes for sale in your budget.