Mortgage in Principle
Show sellers you’re serious
Having a mortgage in principle let’s agents & sellers know you’re serious about buying
A Mortgage in Principle is a document that confirms what you can realistically borrow – basically, it’s how much a mortgage provider will lend you. Not only is it a good way of checking what you can realistically borrow, it also tells any potential seller that you can afford their property. Getting a mortgage in principle is a big part of looking like a serious buyer when viewing.
Our step by step guide on
how it all works
Put bluntly, it depends on what you can afford.
That’s why we start with a review of your current finances, and we talk you through the various costs of buying a property. Before you start browsing the property pages, you need to know your budget, including how much deposit you have available.
A mortgage in principle is not a guarantee, but it does show that a lender is willing in principle to financially support your property purchase.
When you start viewing properties, this makes you look like a serious buyer.
Know what you’re looking for (including your must-haves, nice-to-haves, and deal-breakers).
Then you need to know where to look, including websites, estate agents, property developers, auctions, and property shows.
As soon as you’ve found your perfect place, put in an offer and wait for it to be accepted. Contact us to let us know and we’ll start to get the wheels in motion for you.
To help you find out what you could borrow, simply call one of It’s not impossible to buy a property without a lawyer but it’s not recommended:
1) they understand the property sale and purchase process
2) they handle the various pre-purchase searches so that there are no surprises
3) they take care of the contracts
4) professional insurance means that if things get complicated, you’re covered
Now it’s time to get back in touch with your mortgage lender and make a detailed mortgage application, confirming your Mortgage in Principle.
As part of the application process, the mortgage lender will carry out an independent valuation and survey of the property. Usually, this is a quick and simple process but you have the option to go for a more detailed survey that examines the building’s structure and flags up any possible long-term issues.
Once everything checks out, your lender should make you a formal mortgage offer.
Exchanging contracts takes place 7-28 days before the date of completion (when the property becomes yours!) and involves the lawyers on both sides confirming that both seller and buyer are ready to proceed (for you as a buyer, that usually means having a signed contract, funds for a deposit, the mortgage offer, and a buildings insurance policy.
To help you find out what you could borrow, simply call one of Once contracts have been exchanged and the sale completed, you’ll have the keys and can move in when you want – it’s yours now!
Helping to find you the best
We deal with hundreds of lenders offering the best mortgages on the market
Commonly asked questions
There is no blanket maximum age for applying for a mortgage – most lenders have their own age limits.
Usually, the maximum age at the end of the mortgage term is 75 or your intended retirement age, whichever is sooner. It’s not impossible to get a loan that goes beyond this age limit, but most options require you to provide proof that you can repay the mortgage when it extends into your retirement.
Some lenders will lend to clients up to age 80, using salaried earnings. And some will lend beyond that upon proof of a pension that can cover payments at 80+.
This depends on the type, age and condition of the property you’re buying.
A survey is an assessment of the property’s condition. There are different levels of survey, each with their own benefits and level of detail.
Mortgage valuation (minimum requirement)
This should not really be classed as a survey, it’s an assessment by a valuer sent by the mortgage lender that the price is broadly correct. This assessment can vary from a ‘drive-by/desktop’ to a more detailed internal appraisal.
This type of report is suitable for more modern, conventional properties in reasonable condition. It comes in a standard format and provides an overview, rating each element of the property with a ‘traffic light’ system. The report should highlight any issues that could affect the property’s value
Full building survey
If you’re buying an older property that’s had significant building work, or that will need significant building work after you buy it, then a building survey maybe more appropriate. It’s more in depth and will highlight structural issues as well as the cost of potential remedial works. A building survey will also assess potential issues such as damp, dry rot, woodworm and any potential hazards such as tree roots close to the structure.
The surveyor will send you a report which will include a list of all defects uncovered, their probable cause, level of significance (if they require immediate action or can be ignored for the time being), and recommendations on solutions to these defects, along with costs.
It will also include technical details of the property’s construction, materials used, etc.
It depends on what type of mortgage suits your circumstances and plans best.
As it says on ‘the tin’, your rate of interest is fixed or guaranteed not to change for a defined period (typically 2, 3, 5 or 10 years) regardless of changes to the Bank of England base rate. This type of mortgage gives you certainty, allowing you to budget effectively. They usually carry an early repayment penalty so it’s important to consider how long you wish to fix for (see the info on ‘porting’). The longer the fixed period, the higher the interest rate is likely to be; effectively paying for protection against any market rate changes.
The interest rate on a variable mortgage moves up and down, usually in response to the UK economy. An advantage of this type of mortgage product is that it’s often more flexible, with lower or no exit fees.
Variable mortgages fall into three categories: tracker, standard variable, and discounts.
Tracker – The rate tracks an economic indicator, most commonly the Bank of England base rate or LIBOR. It will be pegged above the indicator it is tied to by a fixed margin for the product term, typically two years or for the lifetime of the loan.
Standard variable rate – This is the rate you will typically move onto after finishing an initial structured rate. Each lender manages their own SVR, often following the Bank of England base rate but not necessarily. They can range from 2% to 5+%. There are no exit penalties for an SVR mortgage.
Discount – These products offer a discount against a lender’s standard variable rate for a defined period, typically two or three years. However, there is no guarantee that a lender will move their SVR down if the BBR rate goes down. Discount rates often don’t carry exit penalties.
The complete guide to buying your first home
Buying your first home is exciting! It’s also stressful, with plenty of ‘traps’ for the unwary.
Expert advice and guidance is essential, and we lay out the whole process – step by step and jargon-free – in our complete mortgage guide for first time buyers.
First time buyer - case study
Learn how Mai’s personalised experience saved her time and money, giving her the mortgage she wanted.