Posted by & filed under Mortgages.

Back “in the day” applying for a mortgage used to be a simple case of bringing in 3 months of payslips, a proof of residence and proof of ID – job done. Those that were self-employed could simply fill in a form stating how much they earned and everything would be fine.

Now however, the rules have changed so take a look at our checklist below to make sure you’re prepared for when you take that step.

Proof of your identity:

This will need to be a valid passport or driving licence.

Proof of your current address:

Such as a household bill in your name no less than 3 months old

Proof of your income:

Your latest P60 and at least 3 recent salary slips (this will depend on the lender)

Prove of affordability:

Evidence of how you manage your money. This will include at least 6 months of statements (it totally depends on the lender) from your current account and details from any loan / credit accounts.

Additional Income:

If you have documents to prove any other income you wish to be considered in your application such as Child Benefit, Maintenance Payments, Disability Allowance, Pension – you’ll need to show these with your application too.

Special Circumstances:

If you fit into one of the following criteria it is highly likely you will need additional documentation:

– Self-employed
– Directors with 25% equity
– Sole Traders
– Partnerships
– Contractors
– Directors of limited companies

The additional documentation will include at least 1 year of trading accounts, signed off by your business partners and your accountant and a corresponding tax statement from HMRC.

Although all lenders will ask for documentation to enable you to apply for a mortgage, they will all have different attitudes to risk and different lending criteria. Credius has access to a wide range of lenders which can accommodate the majority of personal situations so for more advice and the potential to save £££’s on your mortgage.

For more information on any of the topics discussed visit www.credius.com/mortgages or to find out how Credius could help you, contact us directly by emailing info@credius.com or call today on 0207 562 5858.

Next time: Credit Reports – What you need to know

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