Mortgages in Principle

Getting a mortgage and buying a house are usually very much intertwined. When you find a house, you'll probably have to move fast to secure it. To prevent being delayed while sorting out a mortgage you could first get a "mortgage in principle".
Having one means you should be able get the actual mortgage quicker when the race to buy your chosen home begins.
A mortgage in principle is a conditional offer made by a mortgage lender that - provided the information you give them is correct - they will "in principle" give you the loan you have discussed with them. Knowing what you can afford will also help you narrow your search.
It's very useful to have one before you even start looking for a house to give you the edge over any competition.
You can get this offer in writing to show to Estate Agents and sellers who will see you as a serious prospect and not a timewaster who's interested, for example, in looking around peoples' homes for a laugh.
To get a mortgage in principle you have to go through the same motions as an actual mortgage. That is: Consider what type of mortgage do you want and then find a mortgage lender you feel can offer you the best deal.
You could go through the phone book and call each mortgage lender. But the easiest way to do get an offer is to ask a mortgage broker to do it for you. They would also be able to advise you on what type of mortgage could be best for you. You should be able to get mortgages in principle offered over the phone. It's only when applying for the actual mortgage that you will need to show proof of your income etc.

MORTGAGE

A mortgage is a method of using property (real or personal) as security for the performance of an obligation, usually the payment of a debt.
The term mortgage (from Anglo-Norman,[citation needed] lit. dead pledge) refers to the legal device used for this purpose, but it is also commonly used to refer to the debt secured by the mortgage, the mortgage loan.
In most jurisdictions mortgages are strongly associated with loans secured on real estate rather than other property (such as ships) and in some cases only land may be mortgaged. Arranging a mortgage is seen as the standard method by which individuals and businesses can purchase residential and commercial real estate without the need to pay the full value immediately. See mortgage loan for residential mortgage lending, and commercial mortgage for lending against commercial property