Applying for a mortgage in principle
Once you have decided how much you want to borrow, you can choose a mortgage and start the process of applying for a mortgage offer in principle.
What is a mortgage offer in principle?
A mortgage offer in principle means that the lender will state how much they’re willing to lend you in theory. The offer in principle will usually be valid for up to three months.
As well as giving you an idea of how much you can afford to spend, this is also a good way to show sellers that you’re serious about buying.
A mortgage offer in principle is not a guarantee that the lender will give you the money.
Whether you get a formal mortgage offer or not will depend on the exact details of the property, how accurate the information you’ve given is, and what your credit rating is.
How do you apply for a mortgage in principle?
Complete a mortgage application form giving details of your employment, income and financial commitments. Ask your IFA for help with this if you need to.
The lender will run credit checks on you, assess your financial situation and decide how much they are prepared to lend you in principle.
Once you’ve had an offer on a property accepted, it’s time to start making a formal mortgage application.
Making a formal mortgage application>>
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