Making a formal mortgage application

Once you have found the property you want to buy and decided on the mortgage best for you, then you can make a formal mortgage application. You will need to complete a long and arduous mortgage application form. If you have any problems in completing it, you can always ask your lender or financial advisor for help. But you must remember that you are responsible for the accuracy of the details you supply, to check thourally before you sign. At this point the lender will want to know about your circumstances, and if it applies to you, the details of your joint owner. Other details also, such as how much you want to borrow exactly, and where you will be getting your deposit. Information about the property you are purchasing and how much it costs. It is essential you are as open and honest as possible as it will avoid delays later on in your application.

You will also have to supply a variety of documents, usually 4 or 5, to back up your application, and if you are making a joint application, details from both of you. Listed below are items, which your lender might need from you: -

1. Audited accounts or Inland Revenue statements going back 2 or 3 years, if you are self employed.
2. National Insurance number.
3. Proof of identity, such as a passport.
4. Existing housing details, such as a landlord’s reference.
5. Loan or HP agreements.
6. Life insurance policy documents.
7. Pay slips, usually for the past 3 months.
8. P60.
9. Bank details.
10. Proof of address, such as recent utility bills or bank statements.
11. Personal pension details.
12. Mortgage statements.

If you fail to supply the correct documentary evidence then it can slow down your application procedure, and even be rejected. As soon as you know which lender you want to do business with, then ask which documents they require so you can start collecting.

Once your application form has been submitted, then the lender will arrange for a qualified valuer to inspect your property. This simply allows the lender to establish the value of the property and helps them to decide whether to lend you the money. In most cases you will have to pay a valuation fee, but some companies offer to pay this for you, whilst other will give you a refund once the mortgage has been finalised.