Ask what has been approved and which assumptions remain to be checked.
Jack Cousins · Finance Adviser & Consultancy
Specialist finance · Understand the documents
Property finance terms: what is actually agreed?
An initial indication, a decision in principle and a formal offer do different jobs. Start with what has been assessed, what remains conditional and the amount you can actually use. That makes the next conversation more useful when a purchase or refinance has a fixed deadline.
Keep an owner and a next action against each outstanding requirement.
Separate the total facility, first payment and the date funds are needed.
General UK guidance for bridging, commercial and development finance. Your own documents and your solicitor’s advice determine the legal position.
In this guide
Compare the document you have
MoneyHelper distinguishes a mortgage in principle from a formal offer. Specialist lenders also describe further work after their early terms or credit decision: UTB offers credit-approved DIPs followed by application steps, while LendInvest separates initial terms, application, credit approval, professional checks and release. [1] [2] [3]
The table is a discussion framework. Lender labels and the order of work vary; compare the content and conditions, not just the heading.
| Document or stage | What it helps establish | Question to ask |
|---|---|---|
| Indicative terms | A possible facility based on the outline supplied. | Which facts are still assumptions? |
| DIP or AIP | An early lender assessment. | What checks have actually been completed? |
| Offer or facility documents | The written terms and obligations to review. | What am I agreeing to? |
| Conditions and legal work | Requirements that remain before release. | Who must resolve each item? |
| Completion or first drawdown | The first agreed release after the relevant requirements. | What amount, to whom, and when? |
Read the conditions alongside the offer
An offer and the release of funds are separate milestones. LendInvest’s development process places professional due diligence before release. Ask which requirements remain, rather than treating a positive credit decision as a completion date. [3]
For mortgages within the FCA’s MCD rules, a binding offer can contain lawful conditions. These can address material changes affecting the property’s condition, value or title, or the borrower’s ability to afford the loan. This does not mean every offer is freely withdrawable. [4]
Your solicitor should explain the legal documents, security and any guarantee before you sign. Confirm the protections applying to this transaction; rules for a regulated residential mortgage should not automatically be assumed for every commercial or development facility.
Reconcile the facility and the usable cash
Put the current written figures together before accepting costs or relying on a deadline. This is a preparation checklist, not a statement that every lender charges each item.
- Total facility and the amount initially available.
- Deductions from the advance and costs paid separately.
- Interest treatment and payment dates.
- Property, guarantees or other security required.
- Offer expiry, final repayment date and intended exit.
- Fees already paid, further costs and any refund conditions.
Mark estimates clearly. When a figure changes, ask for the revised position in writing. Planning tools can help explain your questions, but do not replace the lender’s documents.
Give each outstanding requirement an owner
A useful progress note has four entries for each item: the requirement, the responsible person, the evidence needed and the target date. Keep “sent” and “accepted” as separate statuses: an uploaded document might still need review.
For example, your adviser may be waiting for a lender decision while your solicitor is resolving a title enquiry. Ask what each person needs next and whether one task depends on the other. This makes a specific delay easier to discuss than a general request to “chase the mortgage”.
Separate the deadline from the hoped-for date
For a purchase, record the contractual deadline separately from the target funding date. For a refinance, record the existing loan’s maturity separately from the proposed lender’s timetable.
Ask what would happen if an outstanding item takes longer, and who needs to be informed. Before committing to a purchase or another binding obligation, discuss the actual funding position with your adviser and the contractual risk with your solicitor. A suggested timetable is a planning aid, not confirmation that funds will be available.
The valuation changes the working figures
This is an invented situation for discussion, not a client case, lending offer or completed transaction.
An outline assumes a £600,000 gross loan against an £800,000 property value. The valuation instead comes back at £740,000. If an assumed 75% ceiling were maintained, the gross ceiling would be £555,000: £45,000 below the original outline, before any deductions.
The question is now how the lender will assess the revised evidence and whether the buyer’s cash and timetable still work. The actual lender may use a different limit or decide the case cannot proceed.
Prepare a short outline, if it helps.
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Your questions, answered.
Does a DIP guarantee a mortgage offer?
No. The full assessment still considers the evidence and the property. A positive early decision should not be treated as a completed funding arrangement. [1]
Does the total facility arrive on day one?
Check the release provisions in your own documents. Ask for the first advance, deductions and any later stages to be identified separately before planning payments.
Is there always a cooling-off period?
Do not assume one. The FCA has specific reflection-period rules for MCD regulated mortgage offers. Ask which rules and contractual terms apply to your facility before signing. [4]
Can I speak to Jack before every document is ready?
Yes. Start with the type of finance, the stage you have reached, your timing and your main question. Secure document-sharing arrangements can be agreed separately.
Sources and scope.
Primary sources checked on 2 November 2026. Lender references are named examples, not rules for the whole market. Preparation prompts and illustrations are editorial explanations. Follow the originals for their full scope and later updates.
- MoneyHelper: what happens when I get a mortgage in principle?
The distinction between an initial mortgage indication and a formal offer; full application and property checks.
- United Trust Bank: bridging finance
An example of a specialist lender describing credit-approved DIPs and further application steps. Product terms remain lender-specific.
- LendInvest: development finance application process
Separates indicative terms, application, credit approval, professional due diligence and release. Published rates and turnaround targets are not reproduced here.
- FCA Handbook: MCOB 6A.3
Binding offers, lawful conditions and reflection-period rules for MCD regulated mortgage contracts. These rules do not apply indiscriminately to all specialist finance.
About Jack · How this site’s content is prepared · Fees, service scope and firm details
A clearer next step
Know what is agreed before you rely on it.
Tell Jack the type of finance, the document you have and the next date that matters.
Your home or property may be repossessed if you do not keep up repayments on your mortgage or other loans secured upon it.
Some buy-to-let, bridging, commercial and development finance is not regulated by the FCA. The applicable protections depend on the transaction. Confirm the service scope and terms before proceeding.