Agreement in Principle – Mortgage Advice in Manchester

Fast & Friendly Mortgage Advice Manchester – Mortgage Broker Manchester

Once you pass the Lenders credit score to qualify for a mortgage, you are given an Agreement in Principle; Often shortened to AIP. Having this in place allows you to make an offer on a property. It’s also quite handy for asking price negotiations, as the seller knows you’re serious and ready to go.

How does your AIP affect your Credit Score?

This entirely depends on the type of search the lender undertakes. These include Soft and Hard Credit Searches, of which will be explained below;

Soft Searches:

Lenders are more likely these days to carry out Soft Searches. They’re similar to Hard Searches, usually needing less information and can leave your Credit Score unaffected which is handy for First Time Buyers.

Hard Searches:

As mentioned above, Hard Searches go more in-depth than the main difference between Hard and Soft Searches, is that Hard Searches can affect your Credit Score. If you have a good Credit Score going into this, however, you shouldn’t need to worry about it.

Does an AIP Guarantee a Mortgage in Manchester?

Your AIP certainly helps with the process but will not guarantee a mortgage. You will need to provide the Lender with documents and then a final decision will be made by an Underwriter. Agreements in Principle usually include small print that can easily be missed. When customers reach out for help about their Agreement In Principle, in some cases we find they’ve been turned away at full mortgage application stage.

The documents required include ID, Payslips, Bank Statements and more. As your Mortgage Broker, we take pride in helping you with Mortgage Advice in Manchester.

Is My AIP a Necessity When Making an Offer?

You can get away with it, although most Estate Agents will want you to provide evidence that you are able to proceed with the purchase.

How Long Will My AIP Last For?

Usually, your AIP needs renewing after around 30-90 days, although this isn’t a worry. The main reason we recommend getting one so early is to avoid you finding your dream home only to be told a Mortgage isn’t available for you, so you don’t always need to buy the first house you see after you get your AIP. It’s a simple process, so if it expires you can quite easily get another.

For more information on Mortgage Agreements in Principle and Credit Scores, please get in touch with a local Mortgage Broker in Manchester and we’ll advise you the best we can.