Buying a house, especially your first home is a big and exciting step. While it’s something to look forward to it can be a drawn out process. And for first-time buyers, mortgage applications might feel like a barrier to the fun task of house hunting.
Thankfully, part of the mortgage process can help your decision-making when looking for your first home – the mortgage in principle.
A mortgage in principle is an indication from a lender of how much they are willing to lend to a potential buyer.
This is usually provided prior to a mortgage application being made. It’s based on an assessment of your income, outgoing and credit score.
While this isn’t a guarantee a potential buyer can borrow the indicated amount, it’s particularly useful for a first-time buyer because it gives an indication of what they can afford. For the seller it also gives reassurance any offer they make is credible.
Having an indication of what you can borrow can help you find the home that’s right for you.
There’s a wide range of properties on the market, so you might have a clear idea of what type you would like from the size, number of rooms, if there’s a garden, and the location, for instance.
A mortgage in principle can help you assess your desired property against what you can afford, narrowing down your home search as a result.
For more advice about mortgages and the types available, visit our mortgage page.