Mortgages: What do the lenders want to know?

In order to make a decision on whether to approve your mortgage the lender requires more detailed information about you. This week we explore what that is.

The basic information required to consider a mortgage application is:

• Proof of identity
• Marital status
• Whether you have any dependents
• Last three years residential history
• Employment position

If you are employed, generally the lenders will ask for the last 3 months of payslips and the latest p60. If you are self-employed then they generally ask for the last 3 years of SA302s (obtainable from HMRC), plus the last 3 years of audited accounts.

Lenders will also scrutinise the last 3 months of bank statements to see how your income is currently spent, and they will carry out their own internal affordability check to ensure that borrowing is acceptable.

Your deposit will need to be evidenced in your statements to prove the source, and if the money is a gift from parents or siblings this will need to be accompanied by a letter confirming that they have no interest in the property to be purchased and the money will not be paid back to them.

For more information on mortgages contact an independent financial adviser, such as TMP Sherwins.