Our last mortgage advice article covered how to get prepared for applying for a mortgage in the context of a faltering economy and against the backdrop of the cost of living shooting up.
This piece is similar in as much it continues with the ‘how to get mortgage ready’ theme – but this time we’re focusing on the mortgage paperwork that you’ll need before meeting with a mortgage broker if you’re employed.
As a Guildford mortgage adviser, mortgage paperwork management is what we do best. But it’s not for everyone. We’ve seen many people crumble at what can often seem like the Herculean task of gathering the necessary documentation required to apply for a mortgage.
So, in order to give you a leg up, here’s a step-by-step guide to the most important mortgage paperwork if you’re looking to get a mortgage.
Payslips are paramount
Demonstrating to a lender how much you earn is the most important step. Without an official understanding of how much income you receive, a lender won’t be able to make a decision on whether or not they should lend to you. Payslips provide a true and accurate picture, so make sure you have at least three months’ worth to hand before you start the mortgage application process. If you get paid weekly, then make sure you can access at least 13 weeks’ worth.
Statements of intent
Similar to how payslips can prove what’s coming in, bank statements also show what’s going out. This aspect is equally as important as it helps to establish mortgage affordability. Having a healthy income is great, but the ‘ins’ versus ‘outs’ need to stack up. For example, if you’re fortunate enough to earn £1,000,000 a year but your annual cost of living is £995,000, then your mortgage affordability rating will be very low.
An employment contract is further evidence that you earn what you say you earn. This might be particularly useful if you’re applying for a mortgage at the same time as starting a new job. Equally, if you’re expecting a bonus or a pay rise, written evidence from your employer confirming that wouldn’t do you any harm.
Belt and braces
A P60 is one of those forms that are often given out by an employer and then stuck in a drawer, only to be forgotten about entirely. But they’re useful to have to hand as they summarise your total earnings from the previous year. So, if you receive additional income from other jobs, then it will be documented here. It’s not essential – and not all lenders require it. However, we would recommend that you locate it before starting a mortgage application.
Right then, you’re all set. The next step is arranging a meeting with your mortgage broker.
Complete Mortgages is a Guildford mortgage broker that specialises in a wide range of mortgages – and has access to some of the best mortgage deals in the UK. So, if you live in Surrey and are looking for advice from award-winning Surrey mortgage advisers, contact our team on 01483 238280 or e-mail email@example.com.