Mortgage in principal

Ultranol_2

Hello,

This is probably the most basic question ever, but as FTBs we are very new to all of this. We have started looking at houses and have seen a mortgage (with first direct) that would be suitable and that we could afford. When I arranged a viewing today the EA asked if we have our mortgage sorted out, but as we haven't put any offers in yet how can we do this?

Thanks

Sweetcaz_2

You can approach the lender with a figure in mind of what you would like to buy for and apply for a decision in principle.

Once you have then found the property you want to buy you go down the formal mortgage application route.

pinkshoes

You need to speak to first direct, go through your finances with them, then they will give you a mortgage in principal, which basically states that they agree to lend you £X.

The EA will want to see this, as SO many people were putting offers in, then discovering that when they actually spoke to the mortgage people, they were offered a lot less than what it said they could borrow online.