Applying for your mortgage

Applying for your mortgage

22nd September 2015

What’s needed on the form?

The mortgage application form covers your personal details and financial background. This will include questions that relate to your credit history as the mortgage company will need to carefully assess if you will be able to afford the new mortgage. The form is also likely to ask for an income and expenditure list for the same reason, but you should already have this information from your own budget planning.

Employment details will be requested, or if you’re self-employed and applying for a mortgage that supports self employed persons, an accountant’s contact information will be required.

You will also need to give full details of the property you are planning to purchase.

Your advocate or solicitor’s contact details and estate agent’s information will be requested.

There will also be a direct debit form so that once your mortgage is agreed your payments can be set up.

What ID and verification do you need?

Proving you are who you say you are and that your income is what you are claiming on your application form is very important. While the list of supporting documentation might appear onerous, this is all information you should be able to readily lay your hands on. We’ve included a quick glance handy checklist at the end of this article (exact lender requirements are often included on mortgage application forms).

Why?

The bank is required by the financial regulator to verify the information you have given it, and it’s also got a duty of care to applicants to ensure that affordability criteria are followed, and that it checks information to protect its business and other customers. After all, you wouldn’t loan hundreds of thousands of pounds to a stranger would you?

This means each applicant will need to supply some ID and various supporting documentation with the mortgage application form and Direct debit mandate.

How?

Originals or ‘certified copies’ are requested. What’s a certified copy? It’s a copy signed by a recognised professional such as a solicitor, doctor, banker from a well known international bank, Member of the British consulate or chartered accountant. If you’re not sure then contact your mortgage advisor to check if the person signing your copies will be recognised.  Please note that each bank may have a different form of words the Certifier will have to write on the copy, so it is worth checking this before asking for your documents to be certified.

What?

Personal ID: This will need to be an up to date original, or certified copy, of a passport or sometimes a driving licence (not provisional).

Proof of address: This needs to be a recent utility bill, (but not a mobile phone bill), a bank statement or some other official documentation such as a tax bill or Social Security notice. Again, this must be an original or certified copy and recent means less than three months old.

Income confirmation: For this Skipton International need either an up to date letter from your employer confirming income, or your last monthly pay slip. For self employed applicants company accounts and tax returns are often required.

Where a bonus is to be included then you’ll need a payslip for this or a confirmation letter from your employer.

Likewise where overtime payments are important payslips for the last 3 months will be required.

For any other income including a child maintenance agreement, supporting documentation will need to be provided as confirmation.

If you’re self employed you will need to provide accounts which have been supplied by a qualified accountant, or tax returns. For Skipton International they require the last two years of both.

Bank statements: You need to provide your last three months of bank statements for your main account (or on occasion 6 months may be required where a full credit search is not available). The statements need to clearly show your account name and number and contain the debits, credits and running balance of your account.

Mortgage statement: If you’ve held a mortgage before you will be asked to provide statements for the most recent 12 month period/last calendar year.

Gifts: If you’re getting help from a friend or family member for the deposit or any other costs then you will need to download a Gift Letter form and get it signed by the donor and a witness. Evidence of the source of funds will also be required. This is again a legal requirement to help counter money laundering etc.

Declaration of source of funds. Again the bank is required to verify where any investment deposits come from, so that includes your mortgage deposit. Documentary evidence will be needed to support this, whether it’s from a house sale, divorce pay out or lottery win. You can find the form needed for that here: https://www.skiptoninternational.com/sites/default/files/forms/declarationofSourceofFundsProforma.pdf

If you have any questions about the form or the information you need to provide then contact the mortgage broker/advisor.  If you’re applying for a Skipton International mortgage we have a team of advisers ready to answer your questions personally. Call 01481 730730.

QUICK GLANCE ID CHECKLIST

  1. SIGNED AND FULLY COMPLETED APPLICATION FORM
  2. PERSONAL ID ie passport/driving licence
  3. PROOF OF ADDRESS ie recent (less than 3 months) utility bill
  4. INCOME CONFIRMATION ie payslips or letter from employer
  5. BANK STATEMENTS last three months
  6. DECLARATION OF SOURCE OF FUNDS

You will need additional documentation if you have additional sources of income, are self-employed, have received a gift, or have held a mortgage before.

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