Most mortgage lenders operate out of large processing centres and local bank managers rarely if ever get involved. Large tracts of the application process are automated and decisions are made against pre-set criteria. But the main reason why there's so much information to provide is down to the politicians.
After the credit crunch in the late noughties, the Financial Conduct Authority which regulates mortgages reviewed the mortgage market and decided to tighten up how people are lent such huge sums. The emphasis is on affordability now. That is why applicants are now asked so many details questions about their monthly outgoings.
Blog Categories. How many months of bank statements and payslips do I need for a mortgage? What to do you need for a mortgage application Most people start by tracking down their latest bank statements and payslips, which will need to go back three months.
Care should be taken when using your bank account during the three months before you make a mortgage application Some lenders will go through your bank statements line-by-line checking for anything that suggests unusual behaviour. Latest Council Tax bill. TV licence renewal letter. Proof of income Two of your most recent P60 documents from past two years. Payslips from past three months.
Check what you need to do. To help us improve GOV. It will take only 2 minutes to fill in. Cookies on GOV. UK We use some essential cookies to make this website work. Accept additional cookies Reject additional cookies View cookies. HMRC suggests keeping payslips for at least 22 months after the end of the tax year they were issued in. However, if possible, it could be useful to hang on to all your payslips, or at least your P60s, so that you have evidence of things like National Insurance contributions later in life.
Bank statements and utility bills do not have to be kept for any specific period of time , if you are not self-employed , but again it can be useful to keep these kinds of records for at least two years, if not longer. Even if you are not currently planning on taking out a loan or other financial product, if your lender asks for bank statements from the past year, it will be a lot easier to keep these documents to hand.
Similarly, loan statements should be kept even after you have made all the repayments, so you have evidence in case of any disputes. Insurance documentation should be kept until the policy expires, and you may even wish to hold on to old policies to compare terms, conditions and costs with your new agreements. This includes your last three months of payslips, your most recent P60 and six months of bank statements. Both paper and electronic documents need to be kept safe, from loss, damage and theft.
Financial documents can be highly valuable to criminals looking to commit identity theft, in particular bank statements and utility bills, which can be used as proof of identity or address. If so, it should include what the deduction is for, how much it is and how often it's paid. If the statement is separate from the main payslip must be reissued within 12 months.
If someone's hours are different from one pay period to the next, these are called 'variable hours', and might be if:. These hours can be shown as a single total or they can be broken down. It can be helpful for the employer to set it out so it's easy to understand at a glance.
For example, if someone is employed to work for 20 hours in a pay period but also works 4 hours' overtime, the 20 hours could be recorded as one entry and the extra 4 hours recorded separately. It's good practice for employers to make sure staff get their payslips before payday.
If the problem still does not get resolved, the employee or worker can raise a formal complaint 'grievance'. If an employee or worker does not get their payslip when expected, they should check with their manager, payroll team or employer as soon as possible.
If the problem does not get resolved, the employee or worker can raise a formal complaint 'grievance'.
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