Proof of Income Documents
Employed applicants will need their three most recent payslips. These must show your employer's name, your gross and net pay, and any regular deductions such as pension contributions. If your pay varies due to overtime or commission, lenders typically average the last three to six months to arrive at a sustainable income figure.
Self-employed applicants need their two most recent years of SA302 tax calculation forms, available from HMRC online or via your accountant. Many lenders also require the corresponding tax year overviews to confirm the figures are up to date and that no tax is outstanding. Some lenders will also accept two years of certified accounts prepared by a qualified accountant.
P60 forms — one for each of the last two tax years — confirm your total annual earnings and tax paid. They provide a snapshot that is harder to manipulate than a payslip alone and give the lender confidence in your declared income. Pensioners and those with rental income will need the equivalent documentation such as a pension statement or tenancy agreement alongside bank statements showing the credits.
Bank Statements and Financial Documents
You will need three months of bank statements for every account through which your income is received and from which your regular outgoings are paid. Online or printed PDF statements are accepted by most lenders, provided they show your name, account number, and all transactions. Statements must be unedited — lenders use them to verify declared income credits and assess expenditure patterns.
Lenders scrutinise bank statements carefully. They look for gambling transactions, payday loan repayments, unexplained large cash withdrawals, and any pattern of being overdrawn near payday. None of these is automatically disqualifying, but they will prompt questions and may affect the outcome. If you have any concerns about your statements, discuss them with your broker before applying.
You will also need your most recent mortgage statement showing the outstanding balance on your existing home loan. This allows the lender to calculate the combined LTV across both loans. If you have a current-account mortgage or an offset mortgage, an up-to-date balance printout from online banking is usually acceptable.
