What does ‘Mortgage in Principle’ mean?

When you apply for a mortgage, you will initially be offered a Mortgage in Principle. This is a conditional offer, meaning that a mortgage provider will agree ‘in principle’ to grant you the mortgage loan you have requested.

It’s a good idea to organise a mortgage in principle before you start making offers on properties, it will give you the advantage over other people because you already have the mortgage organised. So once you’ve found your dream home, you can make an offer, get the mortgage organised and hopefully win the property race!

Only apply for a mortgage in principle with the mortgage lender you wish to buy your eventual mortgage from - this is because applications show up on your credit rating.

Mortgages in principle take into account your earnings and current situation to make you the offer. When you make a full application, they will look into more details and request documentation with proof of earnings etc.