What is a mortgage in principle
A mortgage in principle is an official estimate provided by a lender indicating how much they are will to offer you based on the details you have provided including income and debts.
A mortgage in principle or (AIP) or decision in principle (DIP), allows you as a first time buyer or second time buyer to demonstrate to an estate agent that you are a serious and that your offer is realistic and affordable.
It’s is worth noting that the mortgage in principle is not binding and they could still refuse you a mortgage on those terms, however it is an indication of what you can borrow.
Why apply for a mortgage in principle (AIP) or (DIP)?
Will I need a mortgage in principle?
Will I need a mortgage in principle?
When should I get a mortgage in principle?
Can applying for a mortgage in principle affect my credit rating?
How do I get a mortgage in principle?
How much does a mortgage in principle cost?
What do you need to get a mortgage in principle?
You will be required to provide the following information for both a Mortgage in Principal as well as your full application;
- Income (Payslips, Bank Statements, or accounts if self-employed)
- Spending (Credit card bills, utility bills, subscriptions, credit agreements
- Previous addresses past 3 years
Ensure all of the information that you provide is correct otherwise your actual mortgage may be rejected.
How long does a mortgage in principle last?
A mortgage in principle is generally withstanding for a certain short period of time, depending on the lender, but don’t panic, renewing your offer should be straightforward unless your circumstances or the economic climate has significantly changed.
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