Preparing for your Mortgage Application

Preparing for your Mortgage Application

The more preparation and research that you do, the easier the mortgage process

will go, and less chance of any surprises appearing along the way.

Type of Mortgage

It is worth reviewing and researching the different types of mortgages that are available to you. The main types of mortgages are “Interest Only” and a “Repayment” mortgage. These are normally over a varied period and it is therefore important that you understand the difference between the two.

Mortgage Calculators

There are many different comparison websites that are a good starting point when it comes to working out what you can afford and borrow.

Just remember that all the comparison sites won’t give you the same results, so make sure that you check a few of them before going ahead, as different comparison sites might give you different results for the same lender.

Documents

It is worth collecting the documents that you might need together, to make sure that you have everything and if you have not, request a copy. Every lender will want different documents, but there is also a standard set of documents that most lenders will want, below is a list of documents that is worth collecting and organising before the mortgage application process starts.

• Your last three months’ payslips
• Passport or Diving licence
• Three/Six months of bank statements
• P60’s from your employer
• Proof of any benefits you receive

If you are self-employed you might need to provide: –

• Two or Three years of accounts
• Tax Return form
• Bank Statements

Spending

Most lenders will require you to provide evidence of your current spending. This is to ensure that you can afford a mortgage. So it is worth collecting supporting documents of your current loans, credit cards, utility bills, council tax and any general living costs that you incur on a regular basis.