The Difference between a Mortgage in Principle and a Mortgage Offer

There are various stages involved in buying your first property, so it’s important you know exactly what to expect and the difference in vocabulary that will be used during your purchase journey.

What is a Mortgage in Principle?

A Mortgage in Principle is an agreed figure from a lender detailing exactly how much they are prepared to lend you.

To determine this, your basic information will be gathered beforehand by your mortgage adviser and a background credit check will also be carried out.

This document is not a guaranteed amount or offer, however it is an extremely important part of the process and can help when putting in an offer on your dream home as it provides official documentation that you can afford the property!

A Mortgage in Principle typically is valid for between 60-90 days depending on the lender.

What is a Mortgage Offer?

A Mortgage Offer is confirmation that the lender will lend you your desired amount. This comes after your formal application has been submitted by your mortgage adviser and all the lenders criteria has been met. This is another huge milestone within your purchase journey.

Mortgage offer generally last between 3-6 months depending on the lender.