Mortgage in principle

WorKid

Okay, okay, I'm confused!

I understand it's a good idea to get a mortgage in principle before we start looking, so we are, and can show we are, ready to go when we find the right place.

But if I apply for a mortgage in principle, does that bind me to that lender? I see some lenders have a "booking fee" and an "arrangement fee", so will I lose that if I change my mind and pick a different lender, or for whatever reason can't proceed?

Is applying for a mortgage in principle quicker and easier, or just the same as a full application?

VIGILANT22

ask your family friends to recommend a whole of market adviser...they will explain the whole process and guide you and if they dont find another one!

powerwin

The mortgage agreement in principle is not legally binding on you, it gives you an idea of how much the lender would be prepared to lend you. You would not be under any obligation to borrow from that lender.

It's not legally binding on the lender either.

It is an earlier stage than making your formal mortgage application and you receiving a formal mortgage offer from the lender.

Rgds

JA1000

Warnings over DIPs (decision in principle) - These are what most brokers will submit prior to a proper application however as I found out they are absolutely worthless.

I have just had a DIP accepted through Nationwide, all ok and a credit search carried out with no problems. Spent ages with the broker then filling out all the same details for the application form to have it immediately thrown out and another credit search carried out all within the space of a week.

It has been a total wast of everyone's time and quite clearly there is disconnect between the DIP department and the new business.

You will probably have to do it which is fine but just be aware it is far from guaranteed.

When it gets to those nasty horrible underwriters who are killing our economic recovery then it depends which way the wind is blowing and if it's snowing when they make up their boring minds.

WorKid

Ha ha! Thanks for the warning.

I hope the fickle winds of underwriters whimsy blow kindly for us both.