Chris Collins from CC Mortgages of Portishead explains how having a mortgage in principle helps you to buy a new family home
Obtaining a Mortgage in Principle, from a mortgage expert such as a mortgage broker, is one of the most important first steps for home buyers looking to purchase a new property. In the current competitive housing market, it is a resource that will help to put you in the best possible place to place an offer on properties with confidence.
A Mortgage In Principle (sometimes referred to as an Agreement In Principle) is an agreement between a mortgage lender and borrower, that states that, based on the information inputted on a mortgage application that includes personal details, income details and credit commitments as listed on your credit report, the lender is prepared to lend you the mortgage loan required.
The lender then presents a Mortgage In Principle certificate to the customer via a mortgage broker, confirming that a loan amount may be available to a customer. This document is vital when viewing properties, as by showing this to an estate agent, it demonstrates that the required mortgage loan is available in order to make an offer on a property.
For any first time buyers with a Mortgage in Principle, they are instantly an attractive commodity to any potential seller as they have no chain and no house to sell. This shows that they could move quickly, if required. What’s more, many estate agents and sellers will not allow a potential buyer to view a property unless they have a mortgage in principle in place. This is because this demonstrates that they are in a position to make an offer on a property.
Obtaining a Mortgage in Principle is the first stage of the mortgage process and something that we at CC Mortgages can assist with. To book in a free initial consultation, please get in touch with us. We will help arrange this for you so you can do the fun part which is go view and offer on properties!
We call this appointment a ‘strategy call’ that lasts around 30 minutes. This can be done via video call or face-to-face, whichever suits the client. During this meeting, we will discuss the borrowing amount available based on the individual circumstances of the client. Prior to the meeting, we will request important documents such as proof of ID, proof of income and the clients credit report. These documents will allow us to apply for a Mortgage in Principle for our clients and allow them to off on properties with confidence.