Is it worth getting a Mortgage in Principle letter?

Q My husband and l are prospective first-time buyers and have been recommended by a couple of people to get a Mortgage in Principle letter from a lender, stating that we are in a position to obtain a mortgage and for how much. Is this something you would recommend?

CS

A It sounds a bit of a waste of time to me. Mortgages are based on two main factors. The value of the house to be mortgaged and whether the loan company is satisfied that the borrower can afford the repayments.

The first is far more important, since it is essentially the collateral for the loan. Whether the borrower is in a position to repay is much more flexible since the loan is effectively "covered" by the property.

All a Mortgage in Principle will provide is confirmation that you have sufficient earnings to afford to repay equal to a certain amount-around three times your annual salaries or earnings. But it won't save any time, since the house to be bought will still have to evaluated as meeting the proposed loan criteria-and who knows there might be better mortgages available from another lender at the time.