In this brief guide, we will discuss the nationwide mortgage in principle process and what documents you may need when looking to get a nationwide mortgage in principle.
What is a nationwide mortgage in principle?
A nationwide mortgage in principle or nationwide decision in principle is essentially confirmation from Nationwide that they may be able to lend to you based on the information you have just provided to them. It will also provide the amount that Nationwide may be willing to lend to you.
A nationwide mortgage in principle is good as it will allow real estate agents and property sellers to take you more seriously as well as give you the certainty that you may be able to get a mortgage in the near future based on your current mortgage affordability.
A nationwide mortgage in principle will usually take from a few hours to a few days for you to receive once you have applied for one. The bad news is that a hard credit check is done and this means you may have some damage to your credit file in the scenario that nationwide is not able to offer you a nationwide mortgage in principle and you need to make another mortgage in principle offer from a different mortgage lender.
Most mortgage lenders now offer a mortgage in principle check with soft credit checks so you may be able to find other mortgage lenders who can lend to you.
If you are unsure on if you will qualify for a nationwide mortgage in principle check then you should use the nationwide mortgage affordability calculator first to try and get an indication. You may also want to speak to a whole of market mortgage broker who may have some experience on if Nationwide may be able to lend to you or offer you a decision in principle.
You will need to make an application to get a mortgage in principle. It is important you give truthful information as if you give inaccurate information and get a nationwide mortgage in principle there is no guarantee that you will actually get a mortgage offer and it is even more likely if not certain that every fact on your mortgage fact find will be checked for accuracy before Nationwide provides you with a mortgage offer.
Getting a nationwide mortgage in principle doesn’t guarantee that you will get a firm mortgage offer. In some cases Nationwide may reject you when you apply for a firm Nationwide mortgage offer as your circumstances may have changed during this time or maybe the property you end up deciding to buy is beyond the type of property Nationwide may be willing to offer or maybe you want a bigger mortgage and nationwide simply cannot offer you that loan to value on their mortgage products.
There are many other reasons why a nationwide mortgage in principle could be withdrawn or don’t necessarily serve as a complete guarantee that you will be able to get a nationwide mortgage.
How long does a nationwide mortgage in principle last?
A Nationwide Mortgage in principle will usually last for 90 days but you may be able to get an extension to this by requesting one from Nationwide. You may need an extension to your nationwide mortgage in principle if you are buying an off-plan new build property which isn’t completed yet. In this cases, there are usually delays to when the property will finally be available and nationwide will not want to provide you with a firm mortgage offer when your property isn’t ready to be valued as they simply can’t make a firm and final property valuation if the property isn’t complete.
What documents do you need for a mortgage in principle?
To get a nationwide mortgage in principle you will need a variety of documents
Your ID documents (passport or driving license)
Three years of address history (utility bills)
Proof of your income and outgoings (Your bank statements)
Applying for a Nationwide mortgage in principle
When you apply for a nationwide mortgage in principle, Nationwide will look mainly at the three below things.
Can you afford the mortgage amount you need to buy your house based on your current income and monthly expenditure? This is known as your mortgage affordability.
Nationwide will also check your credit score to see if your score falls within their lending criteria.
Nationwide will finally look at their lending criteria to ensure you fit within their lending criteria.
You can apply for your Nationwide mortgage in principle online or over the phone.
Using a mortgage broker
You may want to consider using an independent mortgage broker to get a mortgage.
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 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.
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 easier as more estate agents and sellers may take you seriously or it will give you confidence that your remortgage is indeed a possibility before you make a full mortgage application. Once you have found a home you want to buy or are satisfied with the mortgage offer for your remortgage then the mortgage broker will then look to get you a mortgage offer.
This will come with a key facts illustration document which details out the features of your mortgage including how much you will pay per month 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.
In this brief guide, we discussed the Nationwide mortgage in principle. Please let us know if you have any questions or comments.
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.