Think Like a Bank - The ID you need to get a Mortgage

In order to get a mortgage it is necessary to have correct ID. These days it is impossible to get a phone contract without proper ID so it is amazing to think how may people believe that it is not necessary to get a mortgage. The classic pieces of ID are passport and drivers license. Be aware that the passport must be in date and the drivers license must show the correct address. If these simple rules cannot be met then we are off to a bad start. Photographic ID is always required - this is the golden rule! If the bank don't ask for it, then it is invariably required by the FSA, the government's financial watchdog. For people without photographic ID my advice is always the same: go out and get some. Passports can be applied for at www.ips.gov.uk and you can start the process of applying for a drivers license at www.direct.gov.uk. In most cases a provisional license will suffice.
If you are not British but hail from an EEA member country then the same rules apply. Some banks will also wish to see your Workers Registration Scheme documents (commonly referred to as the Home Office documents). The most important thing to note with these is that they must show your current address and current employer. If they don't then they are worthless and should be changed as soon as possible.
If you are not British and not from an EEA country then the bank will also want to see you Visa or residence card. People with permanent right to reside have no issues however those wigth limited rights to reside face big problems as the number of lenders who will help them has contracted to only a small handful.
Once photographic ID requirements are passed, the bank will then require proof of your address. For some banks this process is satisfied from something so simple as noting your presence on the electoral roll. The norm however is that you will have to produce documentary evidence of your address from some time in the last three months. Generally this proof will be either a bank statement, utility bill, drivers license or council tax bill. The most obvious thing to state is that it must show a correct address! The other issues which pops up continuously is that if a bank statement is to be used as proof of address then it must be a proper, bonafide, appear in the letter box every month bank statement. Over the counter printouts are not any good, even if they have been stamped and verified by the cashier. Every bank is able to give you a reprint of your statement no matter what they might say. Persistence pays.
If a utility bill is to be used then please make sure it is an actual utility bill as opposed to a welcome letter reminder etc. The banks aren't going to give you a mortgage if you can't pay the gas! Note that mobile phone bills cannot be used with any bank
If you wish to use you council tax bill or drivers license as proof of address then the need for the document to be from the last 3 months is lessened.
It is important to note that since the credit crunch has started the banks are much more likely to look at statements which are used as proof of address as opposed to simply filing them away. They will want to see good conduct, for example, they'll want to see that you have remained within your overdraft limit and they'll want to see direct debits for utility payments. If they don't see this then they will start to probe, and withhold the mortgage offer until their curiosity is satisfied.
In conclusion then, providing ID to support a mortgage application is an absolute minefield. In order to make the process as simple as possible. Make sure you have the proper ID now, and if not take immediate action.
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