When should I apply for a mortgage in principle?

Posted on 1 June 2016

"My fiancée and I are looking to buy our first home together. She is currently coming to the end of a nursing degree but has a job lined up, commencing in September, and I have a full time job. My question is when can we begin the process of sorting out a mortgage in principle? Does it have to be when she has been working for a certain amount of time, so she has pay-slips, or is having her contract (showing the salary she will be receiving) enough to set the ball in motion?"

Thank you for your question, via our ‘Ask the Expert’ section of our website.

Although not knowing your full financial position, it would appear, based on the information you have supplied that this something we can help you to explore. You are looking to borrow £120,000 on a purchase price of £140,000. It's worth mentioning that as with most mortgages, the more money you can put in the potential better access you may have to more lenders and a better rate. It is also important to remember that you would also need to factor in buying costs for purchasing a property such as solicitor’s fees, stamp duty and estate agent fees.

I would need to know whether your fiancee has a probationary period in her contract. If so, when does the probation period end? In addition I would also need to know the exact start date of employment. Based on the information received, we may be able to proceed with the mortgage in principle prior to commencement of employment, if you are able to provide a copy of her employment contract. Ideally you should be in a position to proceed with the mortgage transaction in October as most lenders will require at least 1 months’ payslip and a latest bank statement showing the salary credited.

The lender may also request a reference from your fiancée’s employer to confirm income. To enable me to provide you with a definitive answer we would need full sight of your full financial details, including all your financial commitments so that we can find the right deal for you

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Answers provided in response to Ask the experts are based on the information provided and do not constitute advice under the Financial Services & Markets Act. They reflect the personal views of the authors and do not necessarily represent the views, positions, strategies or opinions of John Charcol. All comments are made in good faith, and John Charcol will not accept liability for them.

We recommend you seek professional advice with regard to any of these topics where appropriate.

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