In the current mortgage climate there are far fewer banks and building societies actively looking to lend money than there were a few years ago, when the market was more buoyant.
Four or five years ago, mortgages were fairly easy to obtain. As long as the borrower was able to pass the lender’s credit score, very little additional supporting documentation (if any) was required.
However, times have changed, and virtually every mortgage case is now fully underwritten and assessed in great detail by the lender, meaning a long list of supporting documentation will almost always be required.
Lenders will normally require at least 3 month’s payslips and a P60 for an employed person; three years certified income figures from a qualified accountant – or official Inland Revenue income confirmation – for a self employed person. All applicants will usually also be expected to provide the last six bank statements and their recent annual mortgage statement, if applicable.
It is very important to have all of this documentation to hand prior to officially applying for a mortgage. After a lender has given an initial approval in principle on a mortgage, they will usually insist on all supporting documentation being forwarded to them within a few days.
If the information is not forthcoming in time, it could result in long processing delays, or in some extreme cases, the application being declined.
Because supply of mortgages currently seems to outweigh demand, it is not uncommon for lenders to be weeks behind with processing their mortgage applications. It is imperative that you provide them with absolutely everything they ask for up front, in order to ensure that your application is processed promptly.
As mortgage brokers placing mortgage applications every day, Limetree know exactly what supporting documentation each lender is going to ask for in advance. We are able to recommend the most suitable lender to meet your individual client circumstances, and ensure that your application is processed as quickly and efficiently as possible.