What is a mortgage agreement in principle?

You’ll then need to ask the lender you’ve decided you want to get a mortgage from for a mortgage agreement in principle, or if you’re using a broker, they can do this on your behalf. Getting an agreement in principle can often be done online in around half an hour, provided you have the information the lender requires. This will include: 

The address that you’ve lived at over the past three yearsYour income, including any bonuses or commission, any pension or benefits paymentsDetails of any credit card or loan repayments Other outgoings, such as childcare costs or car finance

Alternatively, you can usually apply for your decision in principle over the phone, and again this should take around 20 or 30 minutes to complete. Your lender will then be able to put the decision in principle in the post, or send it across to you via email.

Getting a mortgage agreement in principle usually only involves a ‘soft’ credit check, where lenders view your report, but no other lenders can see that they have done this, so it shouldn’t affect your credit score. Your lender will only go through a full credit check when you submit your full mortgage application. This will leave a footprint on your credit score, and other lenders will be able to see that your file has been reviewed.

Author: wpadmin

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