To ask if a Mortage in Principle will tell me what interest rate I may get offered?

[Flamingogirl08]

I sent proof of income, bank statements, ID etc to my broker today and they said they will look at the market and hopefully get back to me with a mortage in principle.

I totally forgot to ask but will this just show how much I can potentially borrow or will it detail the interest rate so I'll know what type of monthly payment I'm looking at?

Sorry FTB and no clue!!

Nope. The mortgage in principle (also called agreement in principle AiP) is just an indication of how much you could borrow. Then you can work out your max budget (the AiP amount plus your deposit) to guide your house search.

Then once you find a house within budget, you make an offer, wait for acceptance, then go to your mortgage broker to apply for a mortgage for the amount needed.

To work out potential monthly payments, I found the MSE expert mortgage best buy tool to be really helpful. You can play around the property value and how much you'll be borrowing, and then play around with mortgage term and any length of fix. Then you can work out what payments would be comfortable with, which gives you a firmer idea of property price to look up to.

Eg. We could borrow about 50k more than we are - because we wanted to stick with a lower monthly repayment. But if we had seen a property that was 100% dream house, we would have had an idea on monthly payments to decide if it was worth the stretch