The Step-by-Step Guide to a Mortgage in Principle in Scotland

Looking for a Mortgage in Principle in Scotland?

If you are thinking about getting a mortgage in principle in Scotland, you may have queries or concerns.

Some questions you might have include:

• What is a mortgage in principle exactly?
• How do I get a mortgage in principle in Scotland?
• Does a mortgage in principle guarantee a mortgage?

Don’t worry because we are here to cut through any confusion and equip you with all the information you need around this subject.

It was much better using a mortgage broker as they quickly searched the market for me and found better rates! Really helpful!

What Does a Mortgage in Principle in Scotland Mean Exactly?

A mortgage decision in principle (or offer in principle) means that a lender would be willing to offer you a mortgage, based on the information they have at this initial stage, essentially: your credit score, income details you’ve provided to them, and the financial commitments you have advised them of. 

Is a Mortgage in Principle in Scotland Necessary?

Do you need a mortgage in principle to make an offer? 

You won’t normally need an agreement in principle before buying a house, unless you are purchasing a property at an online auction, otherwise known as a Modern Method of Auction. If you are buying your house via this route then you need to complete within 56 days. Having an agreement in principle helps you to be ‘mortgage ready’ and makes the process quicker,

What Advantages Does a Mortgage in Principle in Scotland Bring?

Having a mortgage decision in principle, although not essential, can be advantageous for several reasons:

1. It shows you are a serious buyer

A mortgage decision in principle indicates that you are ready to buy once you find your dream home. This gives you an advantage over other, less prepared, buyers.

2. It can help you to get clear on your working budget

Once you know how much you could (potentially) be lent, it narrows your choice of properties to within the range of your available funds.

3. It can speed up the mortgage process

Having those initial checks completed can expedite things, although of course the lender will still need to do more thorough checks before making a mortgage offer proper.

Is a Mortgage in Principle in Scotland Valid Indefinitely?

You may be wondering how long does a mortgage in principle last? Your decision in principle does have an expiry date unfortunately – usually less than 90 days. Any important changes to your situation can impact any eventual mortgage offer you get from a lender.

Changes of circumstances, for example loss of employment, or changing your job, missing payments on a credit card, and other such things, can affect your credit rating and mortgage eligibility. It’s a good idea to keep your offer in principle mortgage current in order to avoid any discrepancies.

Will a Mortgage in Principle in Scotland Mean You Are Guaranteed a Mortgage?

Although obtaining a mortgage decision in principle has many advantages, it doesn’t mean that you are guaranteed a full mortgage offer. A mortgage decision in principle is a good indicator of what you might expect from a lender, but it isn’t a legal contract, and further checks will have to be made before you receive your mortgage proper.

Does an Agreement in Principle Affect Credit Score?

Although applying for an agreement in principle will trigger a mortgage in principle credit check, this shouldn’t have an adverse effect on your credit score. This type of check is usually a ‘soft credit check’, which doesn’t leave a digital footprint or impact your credit score. A soft credit check typically will confirm any existing loans, credit cards, etc and will not be visible to other lenders. It should be noted that there are some lenders that do a ‘hard credit check’. Our team at The Mortgage Broker Scotland will work to ensure that we find the lender best suited to your needs.

Another common question is; Does a mortgage in principle lock in a rate? Again, because of the differences between a full mortgage offer and an agreement in principle, the rate isn’t usually guaranteed or locked in,  however some lenders will allow a rate to be locked in. Contact us and we will be able to advise further.

When To Get a Mortgage in Principle

Once you’ve decided you want to buy a property, apply online through our website. Contact us and our friendly, professional team will get the ball rolling with obtaining you an offer in principle. When you have your offer in principle you can begin your house hunting armed with the knowledge of the amount you can probably borrow, which will give you a better idea of the range of properties you would be able to afford.

A full mortgage is a legally binding, formal offer from the lender. The mortgage offer you receive from the lender will include the loan amount, the rate of interest and the repayment terms. When you have been given a formal mortgage offer, you would review it before accepting the terms laid out in the mortgage offer. At this point you have a mortgage which is not likely to be withdrawn (although it is still possible if something untoward is discovered at this stage). Usual reasons for a mortgage offer being withdrawn include a major change of circumstances, such as losing your source of income.

Applying for a Decision in Principle – What Help Can You Get?

As a professional mortgage broker, we help you to navigate the sometimes murky waters of getting a decision in principle. The Mortgage Broker has years of experience and a huge range of industry contacts so we are in an ideal position to make life easier for you in your quest for a mortgage decision in principle.

How To Get the Best Deal on a Mortgage in Principle in Scotland

When you contact The Mortgage Broker you set the wheels in motion on your mortgage journey. What we do is simplify all aspects of getting a mortgage, including ensuring a mortgage in principle comparison is made so you get the best deal for your circumstances.

You will need to supply us with your contact details first of all and then our expert team will get to work. Our goal is to provide you with a high quality service, get you the best rates, and ensure you get the best decision in principle. We aim to make your house-buying journey hassle free.

What Will The Mortgage Broker Do for You?

We understand that buying a house can sometimes be a confusing and frustrating experience. The process can be complicated, technical and stressful. Our purpose is to cut through the noise and provide you with a clear path to your goal of purchasing a property. 

• Lender research

We have a huge list of industry contacts including specialist lenders and 96+ mortgage providers and access to more than 12,000 mortgage deals we can check. You can be assured that we will only consider those mortgage providers who are able and willing to provide you with the mortgage in principle in Scotland you need.

• Credit check

This initial check is performed when you apply for an agreement in principle mortgage and will usually be a ‘soft’ credit check  (some lenders may perform a full credit check at this stage). The purpose of this credit check is to determine your credit-worthiness and eligibility for a mortgage. A ‘soft’ check simply gives the lender an overview of your financial situation by checking things such as your credit score, confirming your identity, checking any outstanding debts etc. Other mortgage companies cannot see that this soft credit check has been done as it doesn’t leave a digital footprint – and it doesn’t affect your credit score in any way.

Performing a credit check is an essential step to help the lender to calculate the amount they are happy to lend you with an acceptable risk to themselves.

Here at The Mortgage Broker we know the best lenders to support your individual situation and we will provide you with free advice on this important part of your application for a mortgage decision in principle.

• Assessment process

It’s important that you provide accurate information regarding your financial details so that you can get the best rate for you. The assessment is normally a digital process and we will ensure that the information is properly presented for a successful assessment.

• Mortgage in principle in Scotland application

We aim to get you a decision in principle very quickly. Because we have an integration with Halifax, we are able to process an application with them typically in under 20 minutes. We can, of course, make applications with other mortgage providers, including speaking directly with lenders. We can search through our database of more than 12,000 mortgage products to ensure you receive the best deal on a mortgage in principle in Scotland. 

• Getting the decision

Simply put, if your application has been successful, the mortgage provider will offer you a decision in principle mortgage. This essentially means that, based on the financial details you have supplied to them, they would be willing to lend you a certain figure so you can buy your house.

An offer in principle is not a full mortgage offer however, and to obtain a full mortgage more checks will be required. Here at The Mortgage Broker we play a crucial role in making sure that your application is presented in the correct manner and is presented to the specific lenders who are most likely to be able to offer you a mortgage decision in principle.