How long does a mortgage in principle last at Halifax?
In this brief guide, we are going to answer the question ”how long does a mortgage in principle last at Halifax”.
How long does a mortgage in principle last at Halifax?
A Halifax mortgage in principle will usually last up to 90 days and this may very well still be the case at Halifax but you should check with Halifax for up to date information. Some mortgage lenders may offer a mortgage in principle decision which are valid for up to 180 days.
You should avoid applying for numerous mortgage in principle decisions as this could affect your credit rating and make it much harder for you to get a mortgage.
This is because when a mortgage in principle is generated a mortgage lender may run a hard credit check on your credit file.
Too many hard credit checks could bring your credit score down and will also be seen by any new mortgage lenders who are considering giving you a mortgage offer and this may make them eject you as it may seem as you are desperate to get a mortgage.
Most credit decisions are also now being made by computers and it could be that the computer declines any borrower with numerous hard credit searches on their credit file within a certain time.
For more information on how long a mortgage in principle will last at Halifax, you may want to speak to a mortgage broker who can assess your mortgage needs and let you know what mortgage lenders (including Halifax) you may need to approach and how long their mortgage in principle last
What is a mortgage in principle?
A mortgage in principle is an indication by a mortgage lender that they may be willing to lend to you based on the initial and limited assessment which you have undertaken with them.
When you apply for a mortgage in principle a mortgage lender will usually require very limited information from you and in some cases may not even validate the accuracy of the information as a mortgage in principle is not a formal mortgage offer but rather an indication that the mortgage lender may be willing to lend to you.
When applying for a mortgage in principle you will usually need to let the mortgage lender know what your annual salary is, your current debts and what your monthly expenses are.
The mortgage lender will usually carry out a soft credit search on your credit profile in order to gain a summary of your creditworthiness.
A soft credit search will usually not leave any footprints on your credit file. If you have poor credit history then it may be worth seeking the advice of a bad credit mortgage broker before applying for a mortgage in principle.
The mortgage lender will then use this to work out your mortgage affordability and present you with a mortgage in principle if you fit their lending criteria.
You can apply for a mortgage in principle with the help of a mortgage broker or you can apply directly to the mortgage lender.
If you are approved for a mortgage in principle you will usually receive a document or an email stating how much the mortgage lender is willing to lend to you.
Presenting this document to sellers and estate agents will make them take you more seriously than if you didn’t have a mortgage in principle.
Before applying for a mortgage in principle with Halifax, you can ask Halifax how long the mortgage in principle will last and most mortgage lenders will be able to provide you with this information.
The validity of a mortgage in principle is based on the information you supplied when you fill in the mortgage in principle application.
This means that if you have provided incorrect or false information then when you go back to the mortgage lender to make a full mortgage application for a mortgage offer they may reject you.
Can you be rejected for a mortgage in principle at Halifax?
Yes, you can be rejected for a mortgage in principle at Halifax and there are many reasons why you may be rejected for a mortgage in principle.
Some of the reasons you may be rejected for a mortgage in principle at Halifax include:
- You do not have any credit history
- Your employment history is too short
- You do not earn enough to afford a mortgage
- The mortgage deposit you have is not sufficient
- You are not on the electoral roll
- You do not have a long address history
Being rejected for a mortgage in principle at Halifax isn’t the end of the world. There may still be other mortgage lenders who are willing to consider you.
Do you need a mortgage in principle?
No, you do not need a mortgage in principle. You can get a mortgage offer without a mortgage in principle but most mortgage brokers may advise that you get a mortgage in principle before seeking a full mortgage offer.
This is because a mortgage in principle gives you an indication that a mortgage lender may be willing to lend to you with relatively very little or no downside.
On the other hand, if you get rejected for a mortgage offer then this may reflect on your credit score and may limit your ability to obtain further credit such as a mortgage in the near future.
That being said, there are a lot of very good reasons as to why you should get a mortgage in principle.
When you have a mortgage in principle then sellers and estate agents are more likely to take you seriously as you can show that you can afford to buy the house.
Without a mortgage in principle you may be overlooked by the seller.
Peace of mind:
A mortgage in principle may give you peace of mind that you are indeed able to afford a mortgage and allow you to shop for your new home.
That being said, the validity of a mortgage in principle is based around the information which you have put in the mortgage in principle application.
A mortgage in principle may make it much faster should you wish to get a mortgage offer from the mortgage lender who carried out the mortgage in principle as they will already have some basic information on you.
What do you need for a mortgage in principle?
To get a mortgage in principle you will need:
- Your address history for the past 3 years
- Your income details for the past 3 months
- Your expenses for the past 3 months
- You may also need a copy of your credit report
If you are considering getting a mortgage in principle then you may want to use a mortgage broker.
Use a mortgage broker for your mortgage in principle
You may want to use an independent mortgage broker to help you get a mortgage on your new home.
Mortgage brokers are important as they can access mortgage products from across the whole of the market in some cases.
This could be over 11,000 mortgage products. This may have some advantages rather than going directly to a mortgage lender.
A mortgage broker will look to understand your financial circumstances and then provide recommendations on which mortgage products may be suitable for you based on your mortgage affordability.
After giving you these mortgage recommendations, most mortgage brokers will seek your consent to apply for a mortgage in principle.
This will allow you to shop for your home as more estate agents and sellers may take you seriously and it will also give you confidence that your mortgage is indeed a possibility before you make a full mortgage application.
Once you have found a home you want to buy and are satisfied with the mortgage offer for your mortgage then the mortgage broker will then look to get you a mortgage offer.
This will come with a key facts illustration document that details the features of your mortgage including how much you will pay per month.
It will also contain information on if there are any limits such as early repayment fees, or annual overpayment limits.
If you are happy with everything you can then go on to secure your mortgage with the help of a conveyancer.
Your conveyancer will manage the legal searches on the property to ensure there aren’t any issues with it.
They will oversee the sales agreement to ensure it is in your best interest, they will manage the transfer of mortgage funds, exchange contracts with the seller or their conveyancer, and set a completion date with the seller or their conveyancer.
This will then bring an end to the conveyancing process, at which point you will receive the keys to the house and move in.
In this brief guide, we answered the question ”how long does a mortgage in principle last at Halifax”.
If you have any questions or comments please let us know.
If you need financial advice and you live in the UK then you could contact the Money Advice service over the phone or via chat for impartial advice.
You can also contact the debt charity “Step Change” if you are in debt and need help.