You can provide this certificate to an estate agent to confirm you’re proceedable. Once accepted you’ll receive a certificate confirming how much you can borrow. We have access to their sophisticated systems where we provide them with your personal details, financial situation and your requirements – they run a credit check and confirm if they’re happy to consider you for a mortgage. Your mortgage broker will approach the most suitable lender on your behalf. If you’re wondering why, keep reading! What is an Agreement In Principle (AIP)?Īn agreement in principle is a provisional acceptance for your mortgage. Some estate agents (rightly so) won’t allow you to view a property without one. You may have been told by an estate agent you need an agreement in principle. With an online application, you might be able to get an almost-instant Agreement in Principle document, that you can provide estate agents before viewing properties.If you’re looking to purchase a property, either as a first time buyer, home mover or investor. List of banks that give an Agreement in Principle onlineīelow is a list of the top banks that you can apply for an Agreement in Principle online. It is better to find out early on that you cannot get a mortgage than to find out later on, when you have invested lots of time and emotion into searching for your first home. The Agreement in Principle application process will help to unearth if there are any major issues to getting a mortgage, and more importantly, the amount of money you want to borrow. Many First Time Buyers assume they will be able to get a mortgage, but there are many factors that might prevent a bank from lending to you. This is because viewing properties take up a lot of precious time, especially weekends. We strongly recommend getting an Agreement in Principle before viewing properties. Getting an Agreement in Principle may save you wasted time Once you have more certainty about how much money the mortgage lender is willing to lend you, along with the minimum deposit you need to buy a house, you can narrow down your search for properties to only those that you can afford. Even if properties you view are more than the Agreement in Principle amount, that is ok the AIP is less about the absolute amount stated, but more about the fact that the mortgage lender or bank thinks you are creditworthy and have the right financial situation to lend to. Rather, get an AIP for the average house price in your budget. You will have to show the AIP document to the estate agent, and you do not want to reveal the maximum amount you can afford. How much money to request for Agreement in PrincipleĪt First Time Buyer Help, we strongly recommend you do not get an AIP for the maximum price you can afford. There is no need to talk to a mortgage broker, unless your financial situation is complex. An AIP is easily obtainable online, free of charge, from many mortgage lenders directly. In addition, if you do not have an AIP, estate agents will try to “introduce” you to their mortgage broker partners, whom they will earn a commission. However, getting an Agreement in Principle will save you time after your offer is accepted and will give you confidence that you can get a mortgage for the amount that you want. Many estate agents will still show you properties even if do not have an AIP. There is no legal requirement to get an Agreement in Principle before viewing properties. Estate agents hate timewasters who are not serious or First Time Buyers who stand no chance of getting a mortgage. Why would estate agents ask you for an AIP? This is because an Agreement in Principle, as a First Time Buyer, means that you are (1) serious enough about buying a property that you took the effort to secure an AIP, and (2) you stand a good chance of getting full approval for a mortgage. Many estate agents will ask if you have an Agreement in Principle before viewing properties. However, while an AIP is not a guarantee for getting a mortgage, it is a very useful document to have. As a First Time Buyer, an Agreement in Principle is an indication that your current financial situation is adequate enough for a mortgage lender to consider giving you a mortgage.Īn Agreement in Principle is not a guarantee for a mortgage it is an indicative preliminary assessment by a mortgage lender, based on the limited information about your finances that you provide in an AIP application. But do you need to get an Agreement in Principle before viewing properties?Īn Agreement in Principle (AIP) is also commonly referred to as a Mortgage in Principle or a Decision in Principle. All First Time Buyers need to get an Agreement in Principle at some point in the process when buying their first home.
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