Your proof of income for a mortgage
When getting a mortgage the mortgage lender will usually want to see your proof of income. This is not usually done at the mortgage in principle stage but rather after and just before the mortgage lender is ready to make you a mortgage offer.
When accepting proof of income for mortgages, most mortgage lenders will only accept original documents and not screen prints or photocopies.
What do I need to prove my income for a mortgage?
Different mortgage lenders will have different requirements to the proof of income they may require for a mortgage but generally, the below documents will be accepted as proof of income for a mortgage.
If you are paid through PAYE you will be required to provide your payslip for up to 3 months.
If you are paid weekly through PAYE you will have to provide the previous 12 weeks payslips
You will also need to provide 3 months worth of bank statements showing the proof of income coming into your bank account
You may also need to provide your p60 form showing your income for the tax year
Other sources of income
Mortgage lenders may usually accept other sources of income but they may have different limits as to how much of that income they will attribute towards your mortgage affordability.
Some may accept 90% of a particular source if income e.g child benefits while others may accept 100%.
If your proof of income is mostly from other sources as per below then you may want to inform your mortgage broker so they find mortgage lenders who may accept other sources of income.
If you have other income which comes from a various number of sources then you will need to provide proof of income for a mortgage taking into account those sources. Some examples below.
If you have income coming from a pension fund or scheme then you will need a pension statement on a letter headed paper from the pension provider.
If the income is coming from a court order e.g maintenance payments then you will need to provide the court order as proof of income for your mortgage.
If your source of income is a trust fund then your proof of income for a mortgage will need to be a tax assessment letter and a written confirmation from an accountant of this source of income.
If your income is from a benefit such as:
- Attendance Allowance benefit
- Carer’s Allowance benefit
- Child Benefit
- Child Tax Credit benefit
- Disability Living Allowance (DLA)
- Incapacity Benefit (IB)
- Industrial Injuries Benefit (IIB)
- Maternity Allowance benefit
- Pension Credit benefit
- Severe Disablement Allowance
- Widow’s Pension benefit
- Working tax credit benefit
Then, in this case, you will need to evidence through your bank statements that the benefit income is regular before it will be accepted as a proof of income for your mortgage. You may have to submit up to 12 months worth of bank statements to evidence this.
The mortgage lender will also like to know the end date and start date of the benefits.
Proof of income for a mortgage if you are self-employed?
If you are self-employed then the proof of income you may require will be a bit different from the standard borrower based on how you are self-employed.
without a LTD company
If you are self-employed but don't work through a limited company then the documents you may be required to provide as proof of income for a mortgage include:
You will need to provide a HMRC letter headed confirmation of your SA302 tax calculation. You can get this by contacting HMRC.
An accountants reference.
You will also need to provide your bank statements showing the income stated on your SA302 tax calculation form.
If you are a contractor then the mortgage lender may want to see evidence of your contract as proof of income for a mortgage.
with a limited company
If you have a limited company which you work through then the documents you may be required to provide as proof of income for a mortgage include:
Aside from the above documents, you will need to provide company accounts as proof of income for your mortgage. Some mortgage lenders may request 1 years worth of company accounts whilst others may request as much as 3 years.
How can I get a mortgage without proof of income?
You may be able to get a mortgage with no proof of income but this will likely not be in the UK but rather in mainland Europe where self-cert mortgages are still available. You may be able to get limited advice from a UK mortgage broker on getting a mortgage without any proof of income but beware that self-cert mortgages do have a lot of disadvantages and you are more likely to lose your home]() when you have a self-cert mortgage.
Self-cert mortgages are also not regulated by the FCA which means you may have no recourse if things go wrong and nowhere to claim compensation from.
How do I get proof of income?
To get proof of income you must first ask the mortgage lender or mortgage broker what type of proof of income they want then contact the different organisations such as HMRRC, your bank and your employers who may be able to provide the documents you need as proof of income for your mortgage.