How To Get an Online Agreement In Principle
Posted on 08/11/2023
Learn more about a mortgage agreement in principle, how you can go about obtaining an online agreement in principle, as well as why it makes a good idea to get one! Read on to find out more.
Obtaining an online agreement in principle involved just a few simple steps. Your agreement in principle (AIP) provides you with a basic indication from a lender about how much they might be willing to lend you for a mortgage.
Do bear in mind that an agreement in principle is not the same as a formal mortgage offer, but it can be regarded as a helpful first step in the home-buying process as it gives you an idea of how much you should be able to borrow.
Still wondering how to go about getting an online agreement in principle? The following are the steps we’d recommend taking.
Getting An Online Agreement in Principle
Research Your Options
Start by researching different comparison websites, property portals and individual mortgage lenders to look at their offerings. You’ll want to ensure you’re specifically looking for the option to apply for an agreement in principle online which makes the process much quicker and easier.
Before applying for an agreement in principle, you’ll need to gather some personal and financial information. This typically includes details about your income, employment, expenses, and any outstanding debts you might have.
Also consider it is in your best interests to be as thorough and honest as you can and you might even want to consider rounding expenses up. Remember borrowing at the very top of your repayment ability is an extremely risky thing to do.
The inf0ormation you’ve gathered can then be provided to a lender or comparison site and they’ll use that information to perform an affordability assessment. They’ll assess your income, expenses, credit history, and other relevant factors like Bank of England current base rates to determine how much they might be willing to lend you.
Soft Credit Check
Many of us are worried about how credit checks might impact our Credit Score but the type of credit check performed as part of your AIP application needed be of concern.
Part of the process of applying for a mortgage agreement in principle does indeed involve the lender accessing your credit record. When you apply for a mortgage agreement in principle through us, the type of credit check carried out is known as a soft credit check. This means that you can rest assured that it will not impact your Credit Score.
Visit the relevant website and look for the section that allows you to apply for a mortgage agreement in principle where you’ll find an online application form. Fill out the required information as accurately as possible using the information gathered and then submit and wait for a response.
The time a response takes can vary from instantly to a couple of working days and if successful, you’ll receive the agreement in principle online via a portal you may need to log into or via email. The AIP will state the amount the lender is willing to lend you based on the information you provided. Again, do keep in mind that this is not a formal mortgage offer.
An AIP typically has a validity period, often around 60 to 90 days. This means the information is only valid for a certain time, so if you don’t find a property within that time frame, you may need to renew the AIP.
Remember that a mortgage agreement in principle is not a guaranteed mortgage offer. A lender will conduct more detailed checks when you formally apply for the mortgage, which will include a hard credit check and a thorough assessment of your financial situation.
Ready to apply for an agreement in principle?
Start the online agreement in principle process now.