I’ve noticed a lot of people are asking some great questions about a Mortgage in Principle, so I thought I’d put them all in one place, to make it easier for you to access.
As ever, if there’s something that isn’t covered, you can always get in touch with me. Remember it doesn’t cost you anything for mortgage advice from MK Mortgages as the lender commission covers it all.
Do I need a Mortgage in Principle?
It would be wise... With one in place you know exactly what your budget for purchasing is, and you could be viewed as a more attractive buyer, who is ready to move forward with a purchase. It could give you the competitive advantage. Have a look at our Mortgage in Principle blog, for more information on how they work.
What checks are done for a Mortgage in Principle?
Initially credit checks, but this won’t affect your score. You will need to provide your financial information – income and outgoings, savings, loans, credit/store cards and pensions as well.
How long does a Mortgage in Principle last?
Typically, you can have an agreed MIP in place for between 30 and 90 days. This depends on the lender. If it expires before you make an offer on a property you can renew it or ask for a new one with the same or a different lender without impacting your credit score.
Why is it taking so long?
It usually takes around 2 weeks to get a Mortgage in Principle. Factors that can go into the time it takes to get an MIP include lender backlogs, the complexity of your case and the degree of necessary paperwork. Rest assured, I’m on your side to help things go as smoothly as possible.
Does a Mortgage in Principle include a deposit?
Yes. Your deposit is taken into account when you apply for an MIP.
Can a Mortgage in Principle be retracted?
Yes. A Mortgage in Principle is not a legally binding agreement, so it can be reviewed and retracted by the lender at any time. I will do my best to make sure this doesn’t happen, by acquiring accurate and up to date information from you to begin with.
Can I change a Mortgage in Principle?
Yes. For example if you save more deposit, or the lender rates change, I can update your MIP before we apply for a mortgage, so you get the latest and most suitable deal.
Can a Mortgage in Principle be turned into a full mortgage?
Yes. It’s the first step towards an official mortgage offer from a lender, and so when you are ready, you can ask for the MIP to be approved. You may need to provide further information, but securing a Mortgage in Principle should make the process of purchasing go much quicker!
If you do want to ask any other questions, or indeed are ready to find a Mortgage in Principle and start your house buying journey, get in touch with me today. I won’t charge you a fee, even if you don’t take a mortgage out.
