What is a mortgage decision in principle?
Based on the initial information you give to the mortgage lender, they may well say ‘yes, in principle we will grant you a mortgage’. I.e. it is a conditional loan offer. You can then confidently look at prospective properties and go as far as making an offer, knowing that you have a high chance of obtaining the mortgage necessary for purchase. Of course once you get to that stage the lender will want to see documetary proof of your initial statements i.e. relating to your income etc. So it is as it states, a ‘mortgage in principle’. Armed with this, estate agents and vendors will have more faith in you and you shouldn’t be perceived as a timewaster. You may well be dealt with more favourably than any others competing to buy your chosen property who do not have finance in place.
