What is a mortgage in principle and what can I use it for? Learn about the mortgage in principle

A mortgage in principle is not actually a mortgage but more of an approximate guarantee that you can get a mortgage. A mortgage in principle is typically used in the process of finding a property to buy, in your dealings with the estate agent and with the seller.

A mortgage in principle is useful because it gives you a clear idea of what you can afford and increases your credibility with the seller. The steps taken, the considerations and the strategy employed are the same as with the actual mortgage, in fact, it is the same and does not need repeating.

Getting a mortgage in principle is best done as the first thing on you your list before starting to search for a property. If a long time has passed since the time of getting a mortgage in principle to the actual signing of the agreement then it may be worthwhile to see what new offers have emerged in the meantime.

When getting different quotes from different lenders remember to specifically request that they do not do a credit history search for the initial informative enquiry as these will be mentioned in your file and they will lower your credit score because they might be interpreted as refusals.

To see what each mortgage is and what the best deals are please refer to our guides on mortgage types and on choosing a mortgage.