Approval in Principle

[mercury]

Hey, can anyone just tell me what this term means? am i approved or......?

Thanks

[dzug]

You are approved subject to terms and conditions yet to be defined. In other words yes, but the details have to be worked out.

[vicars]

Depends really. If you applied for a mortgage and have been approved in principle it means the lender may have carried out a credit check and a brief analysis of some basic questions and all is OK, meaning you can goto a full application. It may just mean that in principle the answers you have given should mean that you will be accepted. In no way rely on this as meaning you will be given what you have applied for.

[Oneeyedvic]

DIPs are normally acceptances subject to....

This can be a simple exercise in positive spin - so you can have a mortgage agreed subject to:

• ID requirements


• Pay Slips for last 3 months


• Satisfactory conduct of bank account (3 months bank statements)

This can be fine, or it can be a bit open to interpretation - ie they may want to make sure you have no returned payments in the last 3 months, or it may be that they want to see � x per month in savings etc etc.

So the answer is, yes you are approved subject to tsome further condiotions - whether you meet them or not is another question....

[jon1968]

Agree with vicars, my Mum applied for a 4.9% loan with Nationwide to transfer her 1800 non Nationwide credit card balance which was 'Approved in principal' - then received a 'phone call saying she'd been declined based on ability to pay. Funny thing is, at the same time they were more than happy to issue her one of their own credit cards with a 1500 limit at 15.9%!!?