Recently, a coaching session with a First Time Buyer, who, as a student still living at home with their parents, raised a pertinent issue – they lacked a means to prove their address.
In spite of the fact that we met face to face, from the perspective of mortgage lenders and official organisations, this individual was an enigma. In practical terms, without a recognized proof of address this person didn't feature on their records, so navigating the Home Buying Process could prove challenging for them.
The core of the matter lay in requiring a document that confirms your residence. A Proof of Address is vital for various official processes, including in property and finance. It's a key element in the Identification and Verification process here in the UK and when buying a home this Identification and Verification will be conducted by multiple times over by the Estate Agents, your Legal Team, and your Mortgage Lender. All three parties will request your Proof of Address, underscoring its importance in your journey to home-ownership. Its totally understandable that paperwork can be a bit of a bore, but you cannot move home without it, so the earlier you get this out of the way, the better.
Now, not everyone will struggle to provide a Proof of Address, but it's still fairly common especially if you're living at home and haven't yet needed to pay any bills. Similarly, if you're a recent arrival in the UK, it could take time to record of your presence here. However, even if you've lived here your whole life and have an established Proof of Address, keeping your records organized and up-to-date is still a wise move.
Here are practical steps to establish an official presence, you don't need all of these, just one or two will do:
- Register on the Voters' Roll: This electoral register is a primary place to assert your existence if you're over 16 and eligible.
- Get your name on a council tax or utility bill: If you're still living in your parents' home, consider having your name added to at least one utility or council tax bill. But note, that any Utility Bill that you use as a Proof of Address, should be no older than 3 months when requested. The Council Tax bill must be from the current tax year.
- Open a Bank Account: Bank Statements from an account held with a financial institution is also a suitable form of proof of address. Bank Statements must also be no older than 3 months old.
- Obtain a driver's licence: This will include your registered home address, serving as another valid proof. However, note that if you're using your driver's licence as your Photo ID, a separate document is needed for proof of address.
- Rent a property: As soon as you sign a tenancy agreement, also known as an AST (Assured Shorthold Tenancy), you will also be able to use that contract as a proof of address.
While each party that performs Identification and Verification may have their own preferred documents for Proof of Address, the listed options above are the most commonly accepted. Just be aware that in spite of the world is becoming more reliant on digital documents, some parties may still ask for hard copies, in other words, they want to see the documents in paper form. Ask whoever is requesting the information, if you are unclear on what they want. Having this information prepared in advance will help speed up the due diligence process as some of these forms of evidence can take a while to obtain. So be proactive like a pro and get them lined up before they are needed.
Empowering you with education, one form of due diligence at a time, so that you can get through the home buying process quicker and get the keys to your dream new home.