When the decision in principle is completed, a lender should be able to tell you straight away whether they will lend to you, and how much you can borrow. You will normally need to provide three years’ address history and proof of your income and outgoings. Many lenders use a ‘soft’ credit check which does not affect your credit rating. A lender will contact a credit reference agency for a credit check as part of this process. What you can afford based on your income, outgoings and other factors.It lets you know whether a lender will consider you for a mortgage, and how much you can borrow.Īn agreement in principle is sometimes called a ‘Decision in Principle’ (DIP), a Mortgage Promise or a Lending Certificate.Īn agreement in principle takes into account: What is a mortgage, or agreement in principle (AIP)?Īn Agreement in Principle (AIP) is a quick decision from a bank or building society about your borrowing potential. Our guide tells you everything you should know about an agreement in principle. ![]() Are you looking for a new mortgage but you’re not sure whether you are eligible? Or, do you need to know how much you can borrow? If so, you might be considering getting a ‘mortgage agreement in principle’.Ī mortgage agreement in principle is a quick decision that tells you whether a lender is likely to consider your application and what size mortgage you can get.
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