What do the banks want?

So, say you have a deposit ready and now you are ready to deal with the banks. What will they actually want from you (apart from your money)?

Just like being prepared for a job interview, it is worth being prepared for a meeting with the bank. This includes bringing details of:
 

• Your last three years address history. No gaps please. If there are gaps, f.ex if you were living and working abroad, then bring any paperwork you have for that. The more the merrier. Banks value stability so staying in one address shows that you are a reliable tenant, so are likely to be a reliable home-owner. Moving around too much doesn't look too good, so see if you can get references from your landlord to show that you are reliable. If you have moved around for work purposes, make sure you bring employment contracts to show this.


• Your last three months payslips (it may be wise to bring more) and your last P60. If you are a contract worker or self employed, they are likely to want to see three years worth of accounts so start saving them up now. The bank will want to know that they can expect their money back so you'll need to show that your income can support the repayments.


• Your last three months bank statements. If you are applying for a morgage at the same bank where your bank accounts are, then they will be able to dig them out, but if the morgage and your accounts are with different banks, then you have to bring them. Many people (me included) have opted out of paper statements, so that means having to print out statements from my online banking account. Again, this so the bank can check your income vs your outgoings so they can make sure you can afford the repayments to them.


• Details of any loans of credit cards you have. Having loans or credit cards won't automatically disqualify you from getting a mortgage, but the bank will want to see that they will get their money back so make sure the repayments are up to date and that you haven't missed any of them. 

It may sound a bit belt and braces, but think about it. Would you lend houndreds of thousands of pounds to someone who moved address every few months for no apparent reason and who might not be able to pay you back?  Everyone has different circumstances so if you have moved around a lot or your income varies from month to month, be prepared to explain everything and back it up with more documentation. 

In this case, less is definitely not more.