Agreement in Principle.

An Agreement in Principle will help you search for a property in your price range. It may also help you negotiate a better price with the seller because they know you can get a loan.

An Agreement in Principle, sometimes called a Mortgage Promise, is useful if you haven’t found a property you want to buy but would like to know how much you may be able to borrow based on your income. All we need are some personal details about you and anyone else who will be named on the mortgage.

Then we will then make an enquiry about you at a credit reference agency to credit score you and tell you if you have reached our pass mark.

This enquiry will not affect your ability to get credit anywhere else. It will not be seen by other lenders and can only be seen by you on your credit report. When you have made a full application with us, we will carry out a full credit search which will be visible to other lenders.

While we aim to lend you the amount agreed in principle, sometimes we may not be able to lend you as much as this if:

  • any of the details you give us change
  • we have been unable to confirm the information you gave us
  • anything about you has changed at the credit reference agency when we make a full loan application search at the time you apply; or
  • following our discussion with you about your needs and circumstances, we find that we do not have a suitable mortgage for you.

We’ll base our Agreement in Principle on the maximum loan we think you can afford. This is based on what you tell us about your income and expenditure and may change when you make a full application, as we will take more information into account before making a decision. For example, an Agreement in Principle won't take into account the type of property you eventually buy.

Your home may be repossessed if you do not keep up repayments on your mortgage.