Mortgage in principle vs decision in principle
Two names, one idea. Here is what a mortgage in principle (also called a decision in principle) is, what it does and does not tell you, and when to get one.
If you are comparing a mortgage in principle vs decision in principle, there is good news: they usually mean the same thing. Lenders and estate agents use the terms interchangeably.
It is a statement from a lender saying how much they may be willing to lend you, based on some basic details about your income, outgoings and credit. It is not a guarantee. Your first chat with us is free and there is no obligation.
What is a mortgage in principle?
A mortgage in principle, or decision in principle, is an early check by a lender. You give them details about your income, spending and deposit, and they carry out a credit check. If you pass, they tell you roughly how much they could lend.
Many estate agents ask for one before they will take an offer seriously, so it can help you show you are ready to buy.
Mortgage in principle vs full mortgage offer
A mortgage in principle is not a mortgage offer. The lender will still need to check your documents, value the property and complete their full underwriting before they make a formal offer. The amount could change or the lender could decline.
An adviser can help you choose a lender that fits your situation before you apply, as too many credit searches can affect your credit score.
When should I get one?
Usually before you start viewing homes seriously and well before you make an offer. If you are in Portsmouth, our first time buyer mortgage in Portsmouth page explains how we help.
Mortgage in principle vs decision in principle: your questions answered
Is a mortgage in principle the same as a decision in principle?
Yes, the two terms are used to mean the same thing. Different lenders and agents use different names.
Does a mortgage in principle guarantee a mortgage?
No. It is an early indication. The lender can still decline when they check your documents and the property.
Does it affect my credit score?
Some lenders carry out a soft search and others a hard search. A hard search leaves a mark on your credit file. We can help you pick the right lender.
How long does a mortgage in principle last?
It varies by lender, but often around 60 to 90 days. We will check the details for you.
Do I need to pay to speak to an adviser?
Your first chat with us is free and there is no obligation. We will explain how we are paid before you decide to go ahead.
Your first chat is free, and there's no obligation.
Tell us what you're planning. We'll tell you honestly what's possible.