Deal of the Week: Get a mortgage in principle via Zoopla
If you’re looking to take your first step onto the property ladder, you’ll need a mortgage agreement in principle before sellers will take your offer seriously.
But online mortgage broker Trussle, in partnership with property portal Zoopla.co.uk helps speed this process up, so you can pin down your budget while house hunting.
What’s the deal?
Zoopla and Trussle’s free service enables consumers to apply for a mortgage in principle through their website. This enables allow buyers to get a better idea of their budget, and more importantly, put them in a position where they’re able to start making offers on properties.
Why should I care?
Digital brokers can rapidly speed up the process of applying for a mortgage, and will also enable you apply at a time that suits you, which won’t necessarily be the hours accommodated by your local bank.
Trussle compares hundreds of deals from about 90 lenders across the UK. While that’s not the whole of the market, it’s comparable to most independent mortgage brokers. So you’ll get a far bigger pool to choose from than if you were to go directly to a bank or building society.
One thing to point out is that Trussle isn’t a purely digital service. Every deal is reviewed by an experienced mortgage professional who will review your submission and give you a brief call to discuss it before any deal is offered.
What’s the catch?
The mortgage in principle is just the first step of the process it doesn’t mean you’ve fully qualified. Your chances of actually qualifying for the mortgage will depend on factors other than your personal circumstances, for example, whether the lender agrees with your valuation of the property, or if they find any other problems during their survey.
As Trussle doesn’t look at the whole of the market you’ll also need to check that your own bank or building society won’t offer you a better deal if you go directly. It’s also possible your bank will be willing to lend you slightly more than other companies, as it has more information on your borrowing habits than the lenders that only have access to your borrowing habits through credit rating agencies.
What are my other options?
You could visit or speak to a traditional mortgage broker, who should be able to find you a suitable mortgage based on your income, savings and credit history. Many of these companies, such as London and Country, which partners with Moneywise, offer free consultations as they are paid by the mortgage companies.
Where can I find out more?
Visit www.zoopla.co.uk/mortgage-in-principle/ to use the new mortgage service. Alternatively, use our mortgage calculator at Moneywise.co.uk/compare to see which mortgages you might qualify for via London and Country.
A catch-all phrase that can range from assessing the price of a property or vehicle before offering it for sale or the net worth of assets in an investment portfolio to the prices of shares on a stock exchange.
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.
This is a mutual organisation owned by its members and not by shareholders. These societies offer a range of financial services but have historically concentrated on taking deposits from savers and lending the money to borrowers as mortgages, hence the name. In the mid-1990s many societies “demutualised” and became banks. One academic study (Heffernan, 2003) found demutualised societies’ pricing on deposits and mortgages was more favourable to shareholders than to customers, with the remaining mutual building societies offering consistently better rates. In 1900, there were 2,286 building societies in the UK; in 2011, there are just 51.