Welcome to the start of the first time buyer journey – Mortgage in Principle

A Mortgage in Principle is an indication of how much a lender is prepared to lend you and on what terms, taking into consideration your affordability. Your Mortgage Adviser works out your affordability by carrying out a Mortgage Market Review with you.

How do you benefit from having a Mortgage in Principle?

Many first time buyers end up being disappointed because they left sorting out their mortgage too late. They didn’t have a lender in the wings and they didn’t understand their affordability. If you find your property and you make an offer without a mortgage in principle then clearly the seller is less likely to take you seriously.

The person selling their property, will often go with an offer where the buyer clearly indicates that they have a lender in place and that the offer price is within their purchase budget. It provides the property seller with peace of mind knowing they are dealing with someone who is serious about buying a property and that they are backed by a potential lender with funds in place.

Your credit score and how it can affect you obtaining a Mortgage in Principle

It’s important to get your credit history and your credit report in order before you apply for a mortgage, as it will affect the amount of money a lender is willing to lend you. to get everything in order, it’s worth spending some time just your credit file with the different credit reference agencies and just make sure everything is as it should be and that you have no adverse black marks or defaults on your credit.

Quite often you will want to check your credit report and your credit history before applying for a mortgage, loan or credit card. There are 3 major credit reference agencies in the UK. These are Experian, Equifax and Callcredit. Checkmyfile.com have access to all of these credit agencies and their data. They will produce one multi agency report for you. Checkmyfile.com are the only company in the UK offering multi agency credit reports.

A mortgage in principle literally sets the home buyer journey ready and marks your intentions to buy your first property, with all the property industry professionals. You have done your homework, considered the best buy mortgage rates with your mortgage adviser and have the knowledge and understanding on what you can afford. You will also know who will lend you the money, how much they will lend you and what exactly you have to work with in terms of your property budget.

When first time buyers follow our steps and the journey, they really do get a great deal and the key to a new chapter – Home Ownership