Looking to purchase your first home in 2025? One of the first steps to take on your journey to becoming a homeowner is to get a Mortgage In Principle, otherwise known as a Mortgage Promise. It is a statement, provided by a Lender, such as your bank or building society. It provides a written estimate of the amount you are able to borrow, providing a starting point when beginning your house hunting journey.
The benefits of having a Mortgage In Principle prior to beginning your search as a first-time buyer are:
- It helps to identify your budget and price point when searching portals such as Rightmove, Zoopla or patrobson.com. When beginning your house hunting journey, there are certain criteria to identify to help narrow your search. Key areas to establish include, your desired area; property type such as an apartment, house, bungalow; how many bedrooms; and your budget. Each online portal has the facilities to narrow down your search by categories such as these.
- It helps to speed up the process. Once you have found a selection of properties that catch your eye, when contacting an agent to arrange a viewing, they will ask if you have a Mortgage In Principle. Since the lender has already done a preliminary check on your finances, the process of securing a full mortgage offer can be quicker once you’ve found a property. It boosts your offer and gives you a head start on the official application process. This can be a desirable factor for Vendors.
- It shows your intentions when viewing a property. In a competitive sales market, having a Mortgage In Principle helps to show you’re serious when viewing a property. Especially for first-time buyers who are experiencing further competition due to higher prices. If you decided to offer on the property, your offer will be looked at as proceedable over an offer yet to establish their affordability.
- A Mortgage In Principle also allows you to weigh up your options with different lenders and ensure you get the best deals and rates on your mortgage.
- It may help you to future-proof your investment. You may be looking for an apartment or small home to suit the needs of your current family, however a Mortgage In Principle may help you to identify that if you stretch your current budget, you could afford something more than what suits your current needs, if you were to expand your family.
With 27 years experience, our dedicated Sales team are on hand to offer any insights you may need. For further advice as a first-time buyer, or as a buyer looking to sell your home, contact our Residential Sales team today on 0191 20 90 100 or via email at [email protected]
