Mortgage application w/ no specific property in mind.

Hello - a quick one.

I'm currently sizing up my options re: trading up. However I don't have a property identified yet but would like to get an indication from potential lenders as to whether they will approve a new loan and for how much. Does anyone have experience of getting approval in principle without having a property specified.


Thanks...........

yup!
The vast majority of lenders will offer approval in principle - you submit all the documentation as normal, they will issue the approval in principal. Easy!

All loans, in one sense, are first approved in principle. You'll get a formal letter of offer, but the lender won't release funds until they're satisfied as to the title, stamp duty obligations, insurance cover, etc., etc.

So approach your lender, explain the situation, and they'll give you a reasonably quick/accurate idea of how much they'd be prepared to lend you, at what rate and over what period. Then shop around...

Thanks for your replies.
Much appeciated.

Mickaxe

You'll get a formal letter of offer

Click to expand...

A formal letter of offer only issues once you have identified a property to purchase, a formal letter of offer details the property you are purchasing.

You will receive an approval in principle indicating the maximum amount a lender is willing to lend