Your approval decision will be based on a number of different documents that you will need to provide to the banks, here is a list of the key items:
Either your driver’s licence or passport needs to be shown. Always double check to see that your identification is valid for the next 6-months. You must show original identification to the bank but the bank will just photocopied this and returned it to you there and then. It is not a good idea to post your original passport or driver’s licence to the banks so if you can’t do this in person then find an alternative way.
The name on the identification is the name that will be on the mortgage so if you have recently married or change your name then you must sort this out prior to showing your identification.
You will need to produce one of the following with your current address clearly visible on it. This must correspond with your name as shown in you identification proof.
- Gas bill
- Electricity bill
- Landline phone bill
- Bank statement
Any of the above documents will do as long as it has your current address details on it. A mobile phone bill will not do and all address verification should be no more than 3-months old.
You will need to produce 12-months statement on all loans that you currently have, even if you are going to clear these loans in the near future. The key information that banks will be looking at is what the outstanding balance, how much do you pay a month and have you missed any payments. If you are keeping the loan then the bank will factor this in to your borrowing capacity.
You will need to produce bank statements from your saving account, current account and or credit union that shows your savings records for at least the last 6-months. Internet print off will not be accepted by the banks. You can generally order statements from your bank or it can be quicker if you go in to your local branch and asked them to print off the statements and put the bank official stamp on it.
It is vital that you show good management of your current account because one referral charge and that could be you snookered!
If you are an employee then you will need to get your employer to fill in a salary certification for you. This is a one-page form that asks your employer to confirm your salary details and to put a company stamp on it to show that it is authentic. You can get this form from your bank. The Human Resource or Accounts people are best to get this done for you.
If you are self-employed then you will need to produce 3-years of accounts for most banks. If you are new in business and only have two-years account some banks might make an exception if the case is strong enough. Anything less than 2-year of accounts then banks will not take your income in to consideration.
Your latest P60 is need. If you haven’t your latest P60 then you can contact the Inland Revenue and ask for a revenue balancing certificate and this will do instead. It very similar to your P60 but comes on letter headed paper from the Inland Revenue.
Your last three payslips if possible or three payslips that are less than 3-months old. Payslips with any bonus or overtime would be better because this proves to the banks that you are in receipt of additional income and they can factor this in.
If you are building you own home on a site then you will need to produce your planning permission and costing for the build. If you are hiring a building firm on a fixed price contract then the contract will do. If you intend to build by direct labour then your engineer’s details and costing must be supplied.
You will need evidence of were your deposit is coming from. General this will be seen in your bank statements if you have been saving up a deposit. If this is a gift then a letter from the person giving you the deposit stating that they will have no interest in the property and that it is an unconditional gift.
For joint application both applicants must produce all of the above items.
Allan Matthew Cuthbert t/a Financial Wellbeing is regulated by the Central Bank of Ireland to advice on Mortgage,Savings, Life and Pension products