Mortgage sanctioned! Is that the same as mortgage in principle?

[JiggetyJig]

Hi guys - frequent reader - not so frequent poster (*cough*).

Just got a mortgage sanctioned by the bank. Is that the same as mortgage in principle? Got the call this afternoon - said thanks and hung up (I'm deathly ill with a nasty tummy bug so I wasn't in the mood for talking!)
I've been through the mortgage process before (many moons ago in the U.S.) but all the terminology is different!

Thanks!!!

 

[LDFerguson]

Different lenders have different terminology.

Generally speaking, if you submitted hard copies of all your financial details (payslips, P60s, bank statements etc.) and then they came back a few days later to tell you that you're sanctioned, that means you've been assessed by a credit underwriter and the sanction can be relied upon. Example - AIB.

But if you've only given details of your circumstances verbally or online, a sanction just means someone plugged your information into a calculator and the calculator said OK. You'll still have to apply in writing and back up all you've said. So such a sanction isn't worth a huge amount.

 

[JiggetyJig]

Brill! Submitted all the paperwork and filled in the forms! So good to go then!
Now to find a house before we both get laid off!

 

[LDFerguson]

Brill! Submitted all the paperwork and filled in the forms! So good to go then!
Now to find a house before we both get laid off!

I know you jest, but if there's a gap between when you've been sanctioned and when you come back with a house selected, the lender always reserves the right to seek updated proof of continuing employment, e.g. another payslip or updated bank statements.

 

[JiggetyJig]

I do jest Liam! But appreciate the concern! Also don't intend to take out mortgage in the full amount we were sanctioned for (to be on the safe side!)
Do want to move pretty swiftly though - do not want to spend another year in this rented house - it's freezing in the winter!!!!