Does a Decision in Principal include your Desposit?

Laceyxxx

Hi All,

I am a first time buyer. We have just received our Decision In Principal for a mortgage of £151,700.

Now we have a deposit of £25,000

Does this mean that we can only look at properties up to the value of £151,700?

Or can we look at properties up to the value of £176,700

I am a bit confused by it all, basically DOES A OFFER IN PRINCIPAL INCLUDE YOUR DEPOSIT OR NOT?

Thanks in advance!

minhp

I am first time buyer, too. From what I know, no, it doesn't include your deposit.

kingstreet

It's a mortgage agreement in principle, not a purchase price agreement in principle.

Laceyxxx

Thank you, I did believe this but I have been reading different things online and it has made me doubt myself. As far as I was aware a mortgage is the loan... whatever you want to pay towards a deposit is on top of that amount.

David_White

The DIP tells you how much you could potentially borrow.

If the figure on the DIP is £151,700 and you have a £25k deposit then potentially you could purchase a property for £176,700.