Decision in Principle - Should I or Should I not?

always_sunny

I understand if I do a Decision in Principle it will leave a footprint on my credit file, though it would give some indication of the likelihood of being accepted for a mortgage with the lender...

any cons about doing it? I am fairly confident of buying a property (crossing fingers) in the nearest future...

Thoughts?

Malmo

Whether it's a hard search (visible to other lenders for a limited time period) or a soft search (not visible to other lenders) depends on the lender.

If your requirement is to gauge your maximum borrowing power based on your current circumstances, then just use the online calculators that lenders provide. If your requirement is to satisfy an estate agent's checks once you've decided to make an offer, then wait until you've made the offer and have pre-checked that you satisfy the lender's lending criteria (either checking yourself if going direct or via broker).

always_sunny

Thanks - the flat I am looking to has a 1k non-refundable booking fee, so even though the broker seems fairly positive I'd like to have some confidence myself!

I believe it's a hard search and not tied to the property - so I could still use it?

What would be an impact about doing it? As FTB I find the process daunting!

Malmo

DIPs aren't the same as a mortgage offer. The DIP is nothing more than an indication of what you could borrow based on initial credit scoring. Only an approved mortgage offer is secured against a property.

I would trust in your broker to guide you and if they have recommended that particular lender and product, then there's no reasson to think it's unsuitable. After all that's why you sought out their services.