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 a wide network of lenders offering the best mortgages on the market
Commonly asked questions
Loan to value (LTV) is the ratio of mortgage to property value expressed as a percentage. For example, if you purchase a property at £500k with a £50k deposit (10%), you will need a 90% LTV mortgage.
Typically the lower the LTV the better the rate of interest a lender will offer because a high LTV mortgage represents more of a risk to the lender. In terms of LTV, most mortgage rates fall within the 60% to 95% range.
This depends on the lender, and the mortgage.
The majority of lenders allow you to make regular or lump sum overpayments of up to 10% per annum of the amount owed, without having to pay an early repayment charge. If the amount you overpay during the year exceeds 10% you will only be charged an early repayment charge on the proportion you overpay above 10%.
Some lenders offer greater allowances, e.g. charge-free up to 20% or no early repayment charges at all. There are very few fixed-rate products without an exit penalty clause. The more flexible overpayment arrangements tend to be associated with variable interest rate loans.
A mortgage broker will have access to a wide range of lenders and will help you choose the most suitable mortgage for your situation.
It is our job to make the process as hassle-free as possible. We liaise with the lender and your solicitor, complete the paperwork, and are available to guide you through the specifics and answer any questions that arise.
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.