Once you’ve made your mind up about getting a mortgage and got your eyes on your perfect home, you can complete our mortgage comparison process to see the best available rates on the market and get your Mortgage in Principle.
But what is a Mortgage in Principle?
A Mortgage in Principle is a confirmation by the lender that they’re prepared to provide you with the mortgage that you require, based on the information provided. It provides you with an insight on how much you’re able to borrow and is a stepping stone towards securing the purchase of the property that you’ve set your eyes upon.
It’s not legally binding and the amount offered could change following a detailed assessment of your income, spending, credit rating and other factors. It’s also worth noting that while a soft credit search may be conducted, this will not affect your credit rating. However, some mortgage lender’s conduct a hard credit check on your credit file, which can affect your overall credit rating. Here at Mortgagez, we’re able to advise you in advance, whether a soft or hard search will be conducted by the mortgage lender, to keep you fully informed.
What factors are considered when applying for a Mortgage in Principle?
The main things that are considered are:
1. Any debts, missed payments and arrears
2. Lack of consistency or discrepancies in your credit file
3. Address history – whether you are registered on the electoral register at your present address
4. Not meeting the lender’s specific criteria
Why do you need a Mortgage in Principle?
A Mortgage in Principle makes it easier for you to start ‘shopping’ for a home. You’ll have a clear idea of what your budget is and you can show it to estate agents to prove you’re a serious buyer. Your Mortgage in Principle will usually last for between 30 and 90 days, depending on the lender, so if you haven’t found your dream home in that time you may need to apply for another Mortgage in Principle.
What happens after you receive your Mortgage in Principle?
Once you’ve found a property within your budget, based on your Mortgage in Principle and available deposit, you’ll be ready to make an offer.
Here at Mortgagez, our team of fully qualified mortgage advisers is on hand to help you every step of the way in obtaining a new mortgage, and our service won’t cost you a penny when you go via our online portal. Visit our website today and obtain a quick quote with our online mortgage rate tool to see how much you could save on your next mortgage.
PLEASE NOTE: Article written 6th May 2021. Information contained within this article is likely to change and therefore should not be relied upon or form part of any form of decision making without seeking professional advice. *
YOUR HOME MAY BE REPOSSESSED IF YOU DON’T KEEP UP REPAYMENTS ON YOUR MORTGAGE
Any guidance and/or advice contained within this document is subject to the UK regulatory regime and is therefore restricted to consumers based in the UK. Any technical or regulatory information contained within this document was correct at the time of producing it but as it may be subject to change it should not be exclusively relied upon when making a financial decision. The Financial Conduct Authority does not regulate advice on Buy to Let mortgages.
Article written: May 2021 060121 MZ000190
