What is a Mortgage in Principle?
The mortgage industry often has different names for the same thing, so you may hear a "Mortgage in Principle" referred to as an "Agreement in Principle" or a "Decision in Principle".
A Mortgage in Principle means that your situation has been tested with a lender, that you meet the lender's affordability policy and that your credit profile or Credit Score is sufficient to meet the lender's requirements.
A Mortgage in Principle is not a guarantee that you can have a mortgage, and the lender may choose to withdraw their decision at any time, but it's a good indicator of how much you can borrow from a lender.
For that reason, you'll often hear estate agents asking to see a Mortgage in Principle to prove you'll be able to fulfill your offer on a property.
A Mortgage Advisor will be able to give you an insight as to who is the best lender to approach for a Mortgage in Principle in your particular circumstances.