Applying for your first mortgage? All the paperwork and proof you’ll need

If you need to borrow money to buy your first home, a mortgage lender will want proof of who you are and whether you can afford to make repayments. You can do this by showing the right documents and paperwork.

Knowing what these are ahead of any mortgage application will reduce delays to your purchase. Here’s what you’ll need.

Proof of name and address

Your lender will need to confirm who you are and where you live. Acceptable documents include:

• Proof of identity: passport, driving licence or any National Identity Card (EEA and Swiss Nationals only). Your lender may insist on original copies, not scans or photos.

• Proof of address: a bank statement or a utility bill dated within the last four months

Bank statements

Lenders will want to see bank statements from the last two or three months. These will show if you’re financially overcommitted, extensively using your overdraft, are repaying a student loan or receive childcare vouchers, for example.

Proof of legitimate residency 

Foreign nationals applying for a mortgage will need a share code or an E-visa, and potentially supply evidence you've lived in the UK for a minimum of 12 months at the point of application. 

You may also need to show a current valid passport with visa stamp/work visa showing date of entry into the UK, a credit report from your previous country of residence, your most recent bank statements and payslips (last three months).

Proof of income

• If you are employed: prove your income by showing your payslips. Have at least your last three months’ ready but be prepared to show the last six months, if you are relying on overtime or bonuses. You will also need your P60.

• If you are sole trader trading for more than 2 years or a Limited Liability Partnerships (LLP) with fewer than 200 partners: prove your income by showing your last 2 years’ worth of the following documents: tax year overviews together with either tax calculations, evidenced by a print out from HMRC website, a SA302 or the computation produced by your accountant that is submitted to HMRC. 

• If you are self-employed and trading for less than 2 years: prove your income by providing a minimum of one year's finalised financial accounts (limited companies) or one year's tax calculations and tax year overviews (sole trader or partnership), dated within the last 18 months. You’ll also need to show your most recent 3 months' business bank statements. The latest statement date must be within 35 days of the mortgage application start date. 

• If you’re a contractor: you’ll need evidence of a fixed-term contract, its length and how many months are remaining. Provide your latest signed employment contract, together with a letter if your contract has been extended.

• If you are a Limited Liability Partnership (LLP) with 50 or more partners: a letter from the company finance director or accountant detailing your earnings over the past 2 years, the date you joined, and the date you were made partner. The letter needs to be dated within the last 3 months.

• If you are a limited company director with 25% or more shareholding: your last 2 years' finalised accounts (the most recent year must be dated within the last 18 months). If there are multiple directors, you may also need to show the last 2 years' P60s, the last 2 years’ SA302 tax calculations and your corresponding tax year overview. 

• If you are a limited company director with less than 25% shareholding: subject to the same proof as an employed applicant. 

Proof of benefits

Be ready with evidence of Universal Credit, Working Tax Credits, Child Tax Credits, Employment Support Allowance, Widowed Parent's Allowance, Adoption Allowance, Disability Living Allowance or Personal Independence Payment. Benefits can also include private and state pensions or maintenance payments. 

Proof of your deposit

Your lender will want proof that you have saved enough money for a deposit. Provide a bank account or ISA/LISA/Help to Buy ISA statement that shows your deposit amount. Don’t forget, you’ll need a signed gifted deposit letter if a friend or relative is making a financial contribution. 

Proof of capital repayment for interest-only mortgage borrowing

If you are taking out an interest-only mortgage, you’ll need to prove you have a way of paying the capital. This could be the sale of another property you own (not your main residence). If this is the case, your lender may request to see a mortgage statement/settlement relating to the property. 

You’ll also need to supply a solicitor's letter confirming you own the property or a copy of the Register of Title, and a surveyor’s valuation of the property. If you are intending to pay the capital using investments (stocks, shares, bonds, gilts, ISAs etc), expect to show recent statements. 

Applying for a mortgage agreement in principle

Before you apply for a specific mortgage product, you’ll need a mortgage agreement in principle. This isn’t anywhere near as involved as applying for an actual mortgage. When applying for a mortgage officer in principle, you’ll need your exact income, a list of your outgoings and debts, and your addresses for the past three years. 

Don’t forget

• All documents must be presented in English

• If you are a LLP, Ltd or sole trader, your lender will consider if you’ve benefitted from Bounce Back Loans (BBLs) or the Coronavirus Business Interruption Loan Scheme (CBILS)

• If you’re not paid in UK pounds sterling or your income is generated outside of the UK, provide three months’ payslips

• Any bank statements you provide must show your name and your residential address, together with the bank’s name, sort code and address

If you’re not sure what any of these documents are or where you’ll find them, please get in touch for help.