A GUIDE TO

Applying For A Mortgage

When you are applying for a mortgage, there are several things you need to consider. Lenders take into consideration your current and future affordability. This guide to applying for a mortgage explains the simple steps of the mortgage process.

MORTGAGE AFFORDABILITY PAYMENTS

Lenders will want to know you can afford to pay your mortgage. As well as checking whether you can afford your mortgage at the outset, your lender must also check whether you can afford your mortgage payments over the next five years if interest rates go up. They do this by comparing your current financial circumstances with a 'stress test'.

Lenders will ask questions about the following:

Committed Expenditures

including loan payments, credit card bills, child maintenance and school fees

Basic Living costs

including council tax, utilities (gas, electricity and water bills), phone bills, cost of travel to work, insurance premiums and food

Quality of Living Costs

this category will be quite broad but could cover spending on clothes, entertainment and household goods, amongst other things

PREPARING FOR YOUR MORTGAGE APPLICATION

It's advisable to make sure you are in the best possible financial position before applying for a mortgage. We recommend our clients utilise credit reporting platforms to keep track of their credit reports and history.

We also advise clients to collect the relevant documents required by ourselves and lenders when applying for a mortgage.

WHAT YOU NEED TO APPLY FOR A MORTGAGE

By collating the documents before your application starts, you could potentially speed up the process.

You will need:

Utility Bills

Proof of any Benefits Received

P60 Form from your Employer

3 Months of Bank Statements

Your Last 3 Months of Payslips

Passport or Driving License (Proof of Identity)

If you are self-employed, you will need to provide the following documents:

Statement of 2-3 years' Accounts from your Accountant

Tax Return form SA302

Bank Statements to Support your Tax Return

These are some of the basic documentation required when applying for a mortgage. You may be asked to provide more documentation from different lenders.

Try out our free online mortgage repayment calculator