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Getting an Agreement in Principle
Getting an Agreement in Principle is an important step when you’re applying for a mortgage.
An Agreement in Principle (AIP) is where a lender gives you an idea of how much you might be able to borrow. This can help when house hunting, as you’ll know how much you might be able to spend on a new home.
It’s obligation-free and involves a soft credit check. A soft credit check won’t affect your credit score. The lender will want details of your income, where you’ve lived for the last three years and your outgoings.
Start your application
Once you’re ready, it’s a good idea to get some advice from a mortgage adviser. A mortgage adviser is someone who can help you with your mortgage application.
Mortgage advisers can help you find a mortgage deal. They will look at your budget and how much you spend every month
You’ll have a meeting with them first. They’ll go through your personal and financial circumstances and then give you advice on the best course of action to take
Once you’ve made an offer for a property and it has been accepted, your adviser will handle your mortgage application
Your lender will start assessing your application. They will also arrange a valuation of the home you want to buy. While this is going on, the lender will look over your paperwork and run any credit checks they need to
Once they’re happy everything’s in order, they’ll make you a formal mortgage offer. This is usually valid for up to six months, giving you plenty of time to make your decision
How long does a mortgage application take?
The length of the mortgage application process can take anything from one to six weeks. How long it takes depends on whether there are any hold ups while you’re applying.
For example, the process of applying for a mortgage should only take a couple of hours. However, the lender will usually take a few weeks to look over your finances, as well as arranging a valuation of the home you want to buy.
What could delay my mortgage application?
Lenders will do their best to make sure it’s a smooth process, but hold-ups can happen. There are a few common reasons why an application might be delayed:
Not getting documents over on time. Be as quick as you can when sending over paperwork. It’s best to prepare all of this in advance.
Hold-ups during assessment. If there’s an issue with your application, this can slow things down. Keep in touch with your lender to check how things are progressing and if you need to do anything.
The content on this page is for reference and does not constitute financial advice. For impartial financial advice, we recommend government bodies like the Money Advice Service.