How to get a mortgage Agreement in Principle
In most cases, it’s a simple process and can be done with your potential mortgage provider online, over the phone, or at your nearest branch. You’ll usually receive a decision within around 15 minutes of applying, depending on the circumstances.
You just need to follow these simple steps:
- Start the application online, call your lender or visit your nearest branch.
- Provide the details required – usually information about your income and monthly outgoings, how much you want to borrow, and your previous addresses for the last three years.
- Collect supporting documents such as payslips, bank statements, and rental or mortgage agreements.
- Undergo a credit check to assess your financial situation and work out how much you could borrow.
An AIP doesn’t guarantee you a mortgage and you can still apply for a mortgage Agreement in Principle with other lenders. However, the amount offered can give you an idea of your potential budget.
If a provider refuses your mortgage agreement in Principle, it’s not the end of the road. You can re-apply with the same or another provider. Understanding why they refused can highlight the issues to address before you re-apply.
Will a mortgage Agreement in Principle affect my credit score?
A lender will run a soft credit check when deciding whether to offer an AIP. One or two soft checks shouldn’t affect your score. However, multiple applications in close succession could be visible to other lenders.