What is an Agreement in Principle?
When you apply for a mortgage, you start with an initial step known as a Decision in Principle (DIP), Mortgage in Principle (MIP) or Agreement in Principle (AIP). This process involves the mortgage lender assessing your credit history and financial situation to determine the maximum amount you can borrow.
Once you have an Agreement in Principle, a mortgage promise, you can proceed with your property search. When you have found a property you like, you can submit the full mortgage application to the lender. During this stage, the lender will conduct a comprehensive credit check, review your financial details and carry out a valuation on the property before making an official mortgage offer.
Keep in mind that the credit checks during the application process can affect your credit score, so it’s crucial to be cautious when applying for multiple mortgages within a short period. An estate agent may ask to see your Agreement in Principle (AIP) to gauge your seriousness as a buyer and increase your credibility during negotiations.
It’s also worth noting that the Agreement in Principle (AIP) typically remains valid for around 90 days, so if you don’t find a suitable property within that time frame, you may need to renew it with the mortgage lender. It is crucial to carefully assess your financial capabilities to make sure you can keep up with the repayments on your mortgage.
Greenacre’s AIP service
We can play a vital role in helping you secure an Agreement in Principle for your mortgage application. We will begin by understanding your financial situation and preferences, conducting extensive research in the mortgage market to find suitable lenders and products.
We will run through an affordability check with you to understand your circumstances and advise you on how much you can borrow. There are over 100 lenders in the UK and each has their own affordability model. Each will lend you a different amount and it’s important we find the right lender for you based on affordability, price and criteria. We will then make our recommendation to you and proceed to organising your agreement in principle.
Once we have gathered the necessary documentation, we will submit the mortgage application on your behalf and liaise with lenders throughout the process. We will handle credit checks, instruct the valuation, and ensure the application is presented accurately to the lender.
Greenacre will provide personalised advice and recommendations based on your specific financial circumstances and goals. We will streamline the application process, saving you time and effort, and increasing your chances of obtaining a favourable AIP.
Even after receiving the AIP, we will continue to support you during your property search and through the full mortgage application when you find a suitable property. Our expertise and access to over 100 UK lenders will enhance your chances of securing a mortgage that suits your needs and financial situation.
To get an agreement in principle with Greenacre Financial Services, Contact Us today.