What Do You Need for a Mortgage?
When searching for a favourable mortgage, first understand your needs then find a reputable agent to guide you through the process.
There are different types of mortgages, and the plan you choose and documents required by the solicitors may depend on whether you are:
- A first-time property buyer
- Buying to let
- Looking for a commercial mortgage
- Employed or self-employed
- Looking for a Remortgage
- Specialist mortgages
Meeting the Mortgage Broker
During your first meeting, the mortgage broker may want to know more about you. They may ask questions such as whether you have a family, intend to get one, your current financial status, the type of home you would want and evidence of your financial standing. On your part, ask as many questions as you can and make sure the broker is licensed and verified. Explaining your preferences, budget and financial status may help find an appropriate property for you faster.
Documents The Mortgage Broker May Require from You
- Utility bills, driving license or passport to prove your identity and address
- Last three months’ payslip and a P60 form from your current employer
- Prove of benefits
- 3-6 months’ bank statement from your most active bank accounts
- If self-employed or have more than one source of income, you need an S302 form. You also need evidence that backs the S302 form if you are self-employed, such as your tax return information.
The details on the form you fill should be accurate and reciprocate the supporting documents you avail. Check your credit report before making the mortgage application to ensure all the information is correct and up to date.
Additionally, you may be requested to provide details of your expenses and credit card expenditure. Your household expenditure may include utility bills, insurance policies, taxes, childcare, travel and entertainment. Also, are there other employed people in your household?
First Time Buyers
If it’s your first time to get a mortgage, make sure you understand what you are paying, which includes the entire cost and expected monthly and yearly payments. Are there penalties or fees charged when you make early payments? Also, if you are using a broker, he may charge a commission. Understand during the first meeting if he does and how much. To comprehend the mortgage cost or understand the different mortgage products in the market, contact a financial advisor, other mortgage brokers, or lenders’ advisers. You can also use comparison websites to compare different mortgages and get the best deal for your needs.
What to Expect from Solicitors?
If you choose to work with a solicitor, first identify the property you want to purchase. The solicitor can help you carry out
- Property title checks from the land registry which verifies ownership
- Local authority searches that indicate the property is not on land designated for other use such as a motorway
- Water searches
- Flood risks
- Environmental search
The mortgage lender may also request these searches to protect their interests before they agree to finance the purchase. Most importantly, consult widely to avoid possible mistakes when settling for a particular mortgage.