Property > Mortgages
What Is a Mortgage in Principle?
A mortgage in principle, often referred to as an Agreement in Principle, is an indication of whether the mortgage provider will lend you a certain amount based on the information you have provided.
A mortgage in principle is beneficial for a few reasons:
- It gives you an indication of what you will be able to afford as you know the amount the mortgage provider will loan you (albeit only in principle)
- It provides estate agents and sellers with confidence that you can fulfil the offer that you’re making
It is not a guarantee! Just because the provider has agreed to a mortgage in principle, this doesn’t mean you’ll get the same response from a formal application.
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