Applying For A Mortgage

The lender will usually want to see:

• Proof of identity, such as a passport or birth certificate
• Evidence of your income and commitments, such as recent pay slips, a P60 and your bank statements. If you are self-employed, normally two or three years’ audited accounts.
• Information from credit reference agencies, which will show your history of repaying loans in the past, your employer and your landlord if you are currently renting

If the lender says no:

Your mortgage application may be turned down if you cannot provide all the information required (perhaps you are recently self-employed and can provide no proof of income, for example) or you have a poor credit history or you want to borrow more money than the lender is prepared to lend you. Then it is worth trying mortgage lenders who specialise in loans to people with unusual circumstances. They may be prepared to give you a mortgage when other lenders will not. Mortgage magazines, available from newsagents, or an independent mortgage broker should help you to locate such lenders. But the cost of a mortgage from one of these companies may be higher than that for a 'normal' mortgage, so check all your options.

Checking out the property:

The lender will arrange for a qualified valuer to inspect the property you want to buy and check its value. You may have to pay for this valuation, which is carried out purely to help the lender decide whether to lend on the property and, if so, how much. This valuation is not designed to tell you about any defects in the property or repairs that need carrying out. To get a full picture, you should pay for your own home-buyer’s report or full structural survey to be carried out. This can be done at the same time as the valuation.

You can get a mortgage on most types of property so long as they are structurally sound. But you may have trouble getting a loan on dilapidated properties needing complete renovation, leasehold properties with leases for less than 60 years and freehold flats. Again, consult a mortgage broker to put you in touch with specialist lenders.