You've got a Mortgage in Principle. Now what?
20th May 2016
Each year in the UK over 300,000 of us secure a mortgage to buy our first home, and to do that we’ll need a Mortgage in Principle.
What is a Mortgage in Principle?
In a nutshell, a Mortgage in Principle — sometimes called a MIP, Decision in Principle, DIP, or even an Agreement in Principle, in some necks of the woods — is a handy document that can be shown to estate agents to indicate the maximum amount you could borrow.
How to get a Mortgage in Principle
If you haven’t got a Mortgage in Principle yet, you can get one in under five minutes here.
It’s important to know that a Mortgage in Principle is not a formal mortgage offer, nor a guarantee that you can borrow the amount stated; you’ll first need to be credit checked by your recommended lender.
If you’ve already used Trussle to get your Mortgage in Principle, then the next step is to find and make an offer on your new home!
What happens once you have a Mortgage in Principle?
Step 1: Find a property
Property sites like Zoopla and Rightmove are great places to start your search. Once you’ve found a property you like the look of, you’ll want to arrange a viewing. It’ll take some trial and error, so don’t be put off if you haven’t fallen in love with a property after the first few viewings.
Tip: Use Zoopla’s Draw tool to map out your ideal location and get notified by email each time a new property is listed in the area, so you’ll be one of the first to know.
Step 2: Make an offer
Once you’ve made an offer to the estate agent they’ll ask to see your Mortgage in Principle. Since you had the foresight to get one from Trussle, you’ll waste no time in proving you’re good for the money. After some back-and-forth negotiation with the agent, your offer will hopefully be accepted. Then you’ll want to find a great-value mortgage!
Tip: If the agent has an in-house mortgage adviser, they’ll likely try and upsell their services. Other than earning the agent a nice commission, there’s no need to use their in-house adviser. Be aware of the hard sell and don’t feel pressured into accepting.
Step 3: Update your Trussle profile
Since you’ll have already created an account, you can simply log back in and update your profile with the details of your new property. Once done we can get to work finding you the perfect mortgage from over 11,000 deals offered by more than 90 lenders.
Tip: The quicker you update your profile, the sooner we can provide you with our recommendation. This is usually done within 24 hours.
Step 4: Get a mortgage
We’ll first provide you with our recommendation, detailing the lender and mortgage product that we feel is most suitable for you. You’ll receive this by email, but you can also talk through it by phone with one of our friendly advisers.
When you’re happy with our recommendation, we’ll continue processing your mortgage application, providing you with updates of your progress along the way. All being well, your purchase will generally be completed within four to six weeks and you’ll be ready to move in.