This is the most commonly asked question we get, especially from first time buyers. At a basic level, the lender needs to confirm who you say you are and see your annual earnings to determine what they can lend you. If you have a deposit of 5% or more, below are the key items, we and most brokers ask for to help you prep:
- Confirmation of your income – whether that be your tax returns or SA302 forms from HMRC that show your income if you’re self-employed, or payslips if you’re employed. It’s literally as simple as that:
- Proof of salary: If you’re on a salary, 3- month’s payslip should be enough. If you’re self-employed, you’ll need proof of two (sometimes three) years of income and lenders sometimes ask for Accountant Certificate, Tax Returns.
- Photographic ID – so a passport or UK driving licence, for example
- Bank statements – 3 months worth is the standard.
- Outstanding Credit: any current outstanding financial commitments i.e. Loans/Credit Cards. should be presented. Provide the most recent month’s statement to show the current balance and how you’ve paid regularly.
- Council Tax: Again the most recent statement and if you’re applying as a duplicate both need to be on the bill. A utility bill can also work, if you do not have a council tax
- Memorandum of sale – this is the document that outlines that both the buyer and the seller are happy to move forward with the sale.
- Ground Rent/Service Charge (if flat) – this is when part of the your lease agreement is to maintain the land/property, for example a high rise or block of flats. It will be found in your lease agreement or can be found by contacting whomever owns the freehold.
That’s it. If anyone starts asking you for blood samples, they may well be taking liberties.