Information needed for a mortgage application.

nicholaspwright

My girlfriend and I are looking to sell her house, which she almost owns outright, for around £240,000. We will be looking to buy a new house for a maximum of £350,000 so we'll probably have to borrow £120,000 at most. She works part-time and earns £18,000 a year and I work full time and earn £30,000 a year with an extra £10,000 a year in guaranteed over time. We have a joint bank account as well as our own individual accounts. I own a flat for which the mortgage is £486 per month and we let it out for £535 per month. I was just wondering how much information, i.e. how many months worth of wage slips and how many months worth of bank statements, the lenders generally require.
Many thanks,
Nick.

sulphate

Do you know what your credit histories are like? As I understand it the higher your LTV is and the worse your credit histories are, the more you have to provide and the more likely they are to go through them with a fine toothed comb.

Three months worth of payslips is pretty standard. If you have great credit histories you may only need to provide one month's.

For info, husband and I just bought a house (ftb) with 20% deposit and pass A credit rating and for our mortgage application we only had to provide one months payslip and they didn't ask for any bank statements.

Obviously, different lenders have different criteria.

ACG

Depends on the lender but typically:
3-6 months bank statements
3-6 months payslips
They may also want to see statements showing the rent received for anywhere between 3-12 months plus a mortgage statement for the rented property.

nicholaspwright

Hi Sulphate and ACG, really appreciate you taking the time to reply. Totally understand you're providing information and not advice ACG. The LTV on my flat is just over 81% and I have just registered an account with Experian (don't know how accurate or relaible they are) and got a credit score of 999. I would imagine my girlfriends score is similar because she is a lot more careful with money than I am. We will probably have a deposit of around £225,000-£230,000 and will be looking to borrow £125,000 at the very most. I'm a complete novice, how much information do you think they will require? Obviously different lenders will require different amounts but do you have a rough idea?
Thanks,
Nick.

GMS

nicholaspwright wrote: »

I'm a complete novice, how much information do you think they will require? Obviously different lenders will require different amounts but do you have a rough idea?
Thanks,
Nick.

As you say yourself the lenders are all different. May be one payslip only or could be 3 payslips, P60 and 6 months bank statements.

Do you have a particular concern?

ACG

One thing i can see is that the rent from the property isnt a lot more than the monthly repayments. Before applying anywhere (assuming your keeping that property) make sure any lender will accept those figures as some lenders would want the rent to be 125-150% of the monthly repayments... others just want it to cover itself.

amnblog

Why do you ask? Is there a problem with the bank statements or wage slips?

nicholaspwright

Hi ACG, we actually get 625 pounds for my flat but pay 90 pound to the letting agent if it makes any difference.