31 Mar 2022
Get Mortgage Organised
We often get calls from clients requesting a mortgage on a property, which their offer has just been accepted. This is great, although quite often they aren’t in a position to proceed to mortgage application due to not having the correct paperwork at hand.
A list of the most common cause of delay are listed below with our tips to help you avoid the same pitfalls;
The latest three months’ bank statements are generally required which is expected. However, this will be for all accounts, for example, some people will operate bills separate from their income account.
To be prepared, a good practice is to ensure you have internet banking set up and that E-statements (internet bank statements) have been switched on. This will enable you to simply download your bank statements for all accounts in pdf format to be uploaded via our platform.
For self-employed applicants, lenders will require your most recent tax calculations (which usually cannot be more than 18 months old) AND tax year overviews which can be downloaded from your HMRC site or requested from your accountant.
Proof of deposit
Evidencing a deposit to a lender can be done by way of bank statements but quite often applicants will move money around to show a statement with all the funds in one place. This will prompt further questions from a lender as to where the money has come from and a request to show further bank statements causing delays. When presenting your offer, please provide the statements of savings accounts, bonds and ISA’s where the funds were saved or if a gift, we can provide a draft letter for your gift or complete.
When selling a property, there are several forms to complete prior to being contract ready. Seller’s questionnaire, Property Information Form, Fittings and Contents form, Fensa certificates, Gas Safety certificate, Leasehold & Management pack (where necessary) etc so make sure you instruct a solicitor at the same time as listing your property for sale. By having your forms completed and back with your solicitor you can be ready to send out a contract as soon as you receive an offer cutting weeks from your time to complete your sale.
When buying a property choose your solicitor early and ensure they are able to act for the lender your broker has recommended prior to instructing them as needing to change solicitor can also add to delays.
Fortunately, many businesses now publish online payslips which can be downloaded and sent over. If your company does not issue online payslips, then start collating them in one place ready to provide as the lender will require consecutive slips to evidence income. When using Bonuses or overtime to prove affordability, the payslips evidencing these will also need to be provided so keep them safe and at hand.
CamScanner is a useful app that turns your phone into a scanner converting your documents into emailable pdf’s
For any advice or help you need, please get in touch with our team.