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Agreement in Principle & Soft Credit Searches in Manchester

What is an agreement in principle?

An Agreement in Principle (AIP) is the first step for first time buyers in Manchester to get a mortgage. It’s sometimes called a Mortgage or a Decision in Principle, and lets you know how much you could borrow before you apply for a mortgage. It’s not a binding agreement but rather an indication of the maximum amount you can borrow for a mortgage. Obtaining an AIP can be a useful step in the home-buying process as it gives you an idea of your borrowing capacity, helping you narrow down your property search to homes within your budget.

What is a soft credit search?

A soft credit search, also referred to as a soft credit check or soft inquiry, is a type of credit check that does not impact your credit score. Soft searches are typically used for background checks, pre-approval processes, or when you check your own credit report. When you apply for an Agreement in Principle, lenders usually conduct a soft credit search to assess your creditworthiness without leaving a mark on your credit file. This allows you to shop around for mortgage deals without worrying about damaging your credit score.

What is a hard credit search?

In contrast to a soft credit search, a hard credit search, also known as a hard credit check or hard inquiry, does affect your credit score. Hard searches occur when you apply for a mortgage. Lenders conduct a comprehensive review of your credit history and financial background to assess your risk as a borrower. Each hard search leaves a record on your credit file, and multiple hard searches within a short period can lower your credit score temporarily.

Book Your Free Mortgage Appointment Today

Being a trusted mortgage broker in Manchester, we play a crucial role in helping you navigate the mortgage process and understand the implications of credit searches.

We have access to a wide range of lenders and mortgage products, allowing them to find deals tailored to your individual circumstances. During your free mortgage appointment with us, we can advise you on the most suitable lenders based on your financial situation and preferences.

Additionally, brokers can help you avoid unnecessary hard credit searches by matching you with lenders who are more likely to approve your application based on soft search criteria. By leveraging our expertise and industry knowledge, we can streamline the AIP process and ensure that you approach lenders who are most likely to offer you favorable terms.

Our mortgage advisors in Manchester can guide you through each step of the mortgage application journey, from initial assessment to final approval, providing invaluable support and advice along the way.

With our assistance, you can secure an Agreement in Principle within 24 hours after your appointment, and fill first time buyers in Manchester with confidence with knowing that you’re making informed decisions that align with your long-term financial goals.

Date Last Edited: February 7, 2024

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