WHAT IS A DECISION IN PRINCIPLE?
A Decision In Principle is an initial agreement from a mortgage provider, giving us a fair accurate idea of the amount they will lend you based upon your income and an assessment of what is ‘affordable’. Our job as your Mortgage Broker is to match you to the right lender or lenders and make that approach on your behalf. For most lenders your don’t need to have found a property at this point although an idea as to whether the property will be Freehold or Leasehold is useful to use as this can affect the lender we may choose for you.
Please be aware that a credit check is made at this time. In most cases this means that a ‘footprint’ will be left on your credit file, which other lenders may be able to see if they carry out checks themselves. This shouldn’t concern you unless you have a lot of credit checks done over a short period of time. We can discuss this with you to make sure you are aware of the facts and answer any concerns you have.
Once we have a positive decision, most lenders provide a letter or certificate which will show that a mortgage has been approved, ready for you to show to an Estate Agent that you can afford to buy a property.