Glossary: Mortgage in principle
A conditional offer made by a mortgage lender to verify that it will ‘in principle’ give you the mortgage loan you have discussed with it. This helps speed up the house-buying process as it demonstrates to sellers you’re a serious buyer. However, it’s not a guarantee the lender will lend you the money, as this will still depend on a survey of the property and the outcome of credit checks. The offer in principle will be valid for a limited time, usually up to three months.