Mortgage market: My, my how you’ve changed!

We’ve noticed an increasing number of clients stating how complicated and time consuming the mortgage application process is these days. Compared to the golden days of 2007 when applications were processed in around 10 days, due to regulatory changes and forensic accountancy, it now takes much longer. What can you, the mortgage applicant, do to speed things up on your side?


Henry Knight, Managing Director of Springtide Capital has put together a quick 5-point guide to the pitfalls and perils of getting your paperwork in order.


1. For purposes of identification make sure you have an up to date passport.  If using your driving licence, ensure it is showing your current home address.


2. You will need to have a proof of address. Lenders will only accept a hard copy that has been posted to your address, rather than an online version. It must be addressed within the last three months and show the current address in its correct format.  Many lenders also expect to see the first initial of the clients name showing.


3. If you are employed, you must obtain the last three months payslips and last two years P60s. These are the documents that people often have issues locating. However, you can normally obtain duplicates from your HR department if you cannot locate them.


4. If you receive a bonus, you must also demonstrate the latest pay slips for this. Again, it can be tricky to find so ask for assistance in your accounts or HR department if you cannot find the hard copy.


5. If you are self employed, you will need an SA302 form from the last three years as well as the last three years accounts.  Few people have heard of an SA302 form and they are not sent out automatically.  You will need to phone HMRC to request the documents and they will insist on posting them out.  HMRC also only send these by second class post meaning they can take 10-15 days to come through.