As a First Time Buyer, when you start your search for your dream home, it's important to consider certain key factors to ensure that you understand the entire process. One of the most important aspects is determining the amount a lender is willing to lend you. To do this, you will need to obtain a mortgage Approval in Principle (AIP), which provides an estimate of your borrowing capacity. This enables you to focus your house hunting efforts on properties within the price range of the amount specified in your Approval in Principle.

A mortgage Approval in Principle refers to a statement or letter from a lender indicating the amount they are prepared to lend you. While it is not the official loan offer, an AIP helps you understand whether you qualify for a mortgage and provides you with a clear idea of the borrowing amount available to you. Typically, the AIP serves as the foundation for the official loan offer.

When you decide to embark on your homeownership journey and seek Approval in Principle, it is best to use the services of a mortgage specialist who will assist you in compiling your application and deal with the lenders on your behalf. At Which Mortgage we have access to all lenders in the market, which allows us to evaluate all available products and assist you in finding the mortgage that best suits your individual needs and circumstances.

While your Approval in Principle does not guarantee a mortgage or a specific deal, in many instances estate agents will request to see your AIP when you are looking to view or make an offer on a home. Your AIP serves as proof to estate agents that you are likely to receive a Full Loan Offer (FLO), which is likely to enhance your chances of making a successful offer.

Once you have used our mortgage calculator and have an idea of the different mortgage rates and deals available to you, reach out to us. Our mortgage specialists will assist you in evaluating all the offers in detail and help you ascertain which mortgage is right for you. Once we have guided you through identifying the right mortgage, we will compile your application.

We will collect all documents to verify your identity, residence, income etc. and once your application is completed, we will submit it to your chosen lender.

Your application will comprise of the following documents:

The lender will review your application and once your eligibility is approved, you will receive your AIP. Your Approval in Principle will usually be valid for between 6 to 12 months.

With your AIP in hand, we recommend that you start house hunting without delay so that you maximise your chances of finding your perfect home. Your AIP will help you narrow down the homes within your budget, which may impact the locations you can consider. You can search for available properties through estate agents or property websites.

When you find a home that aligns with your needs, circumstances, and requirements, you can proceed to make an offer. At this stage, you will be required to pay a booking deposit to hold the property at the agreed price until you receive your Full Loan Offer from the lender. You will receive your FLO once a valuation of the home you wish to buy is carried out. In some cases, and depending on the time that has elapsed since you received your AIP, the lender may require updated documents (such as updated payslips and bank statements) to ensure that you still satisfy their eligibility requirements.

Your Full Loan Offer outlines the complete terms of your mortgage, namely the agreed mortgage amount, the term, the rate and the type of mortgage. We will review your FLO with you and the solicitor you have appointed will handle the conveyancing aspects of your home purchase.

Once all contracts are signed and the loan conditions (if any) are complied with, the lender will transfer the mortgage amount to your solicitor who will in turn transfer it to the seller's solicitor on your behalf, i.e. your mortgage will be drawn down. Then all that's left for you to do is move into your home.

Obtaining Approval in Principle is an important milestone in your mortgage journey as it enables you to search for your dream home with confidence! By planning diligently and partnering with Which Mortgage, you can navigate the process with efficiency and secure a mortgage that suits your needs. Contact us today for a straightforward and seamless mortgage process.