If you're looking to move your mortgage from another lender or buy a new property, mortgages above 85% of the property value are temporarily unavailable. However, you may still complete an Agreement in Principle (AIP) to see how much you could borrow.
With an Agreement in Principle (AIP) you can take the first step to buying or remortgaging your home. An AIP will give you an idea of how much you could borrow before you apply for a mortgage
As well as letting you know how much you could borrow, you’ll also get an idea of how much you can afford to spend on your new home. That means you can start looking at properties in your price range.
It can also help you to agree a better price with the seller, because it shows you’re a serious buyer who can get a mortgage.
An Agreement in Principle (AIP) helps you understand how much you could borrow before you apply for a mortgage. It’s also known as a Mortgage Promise or Decision in Principle and is often seen as the first step to buying or remortgaging a home. An Agreement in Principle is obligation-free and only involves a soft credit check, which means there is no impact on your credit score.
When applying for an Agreement in Principle you will typically need the following information:
Having an Agreement in Principle means you can view properties with a clearer understanding of what you can afford. Whilst it isn’t compulsory to have an Agreement in Principle in order to view properties, it can show estate agents and sellers that you are serious about buying. An Agreement in Principle also means you can make an offer as soon as you find your ideal home.
A mortgage offer is an official document from your lender to confirm they will provide you with a mortgage for a specific property. This is only provided after you have completed a full mortgage application where more detail is provided and a full credit check is carried out.
Unlike a full mortgages application, an Agreement in Principle will not affect your credit score. Only a soft credit check is carried out for an Agreement in Principle, where we confirm certain details about your application with credit reference agencies. It’s only when you apply for a mortgage that a full credit check is carried out.
Your home may be repossessed if you do not keep up repayments on your mortgage.