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What is a Mortgage Agreement in principle (AIP)?

Need a Mortgage Agreement in Principle in Cambridge?

What is an Agreement in Principle | MoneymanTV

Here you’ll find out the basics that you need to know about agreements in principle, including the pros and cons of getting one. For more information, get in touch and speak with one of our expert Mortgage Advisors in Cambridge today. An Agreement in Principle (also known as an AIP or Decision in Principle) is where you pass a Lender credit score to qualify for a mortgage.

By obtaining an Agreement in Principle, you prove that you are ready to support any offers you make as a First-Time Buyer in Cambridge. It may also help negotiate a lower price if you have one of these, as it shows the seller you are serious and have the means to continue with the process.

Will obtaining an Agreement in Principle affect Credit Score? 

The more commonly seen methods of credit scoring are via soft searches rather than a hard search. These may still affect your credit score, though a hard search will usually be more likely to do this than a soft search.

Reasons come down to a hard credit search that can leave a credit footprint, whereas a soft search does not. Regardless, you can rest assured that whichever is used by the Lender is done with the best intentions.

Should I avoid hard credit checks? 

Having your credit checked via a hard search every so often should not make too much difference. It becomes an issue if you take too many of these within a small amount of time. On the flip side, if you know you have a good credit score and the best path to take with a lender, this should not be a problem.

Is an Agreement in Principle a guarantee that I will get the Mortgage? 

Whilst the prospect of this would be excellent, there are no guarantees that having an Agreement in Principle will allow you to get a mortgage. The Lender will still require seeing all your documents, and only then will an Underwriter make the very final decision.

Often we find that customers contact us after they got declined at the application stage due to missing some small print in their Agreement in Principle. You will need to provide ID to prove that your identity, payslips to prove your income and bank statements to prove you are smart with money before a lender offers your case.

Can I make an offer without an Agreement in Principle? 

Though you can make an offer without an Agreement in Principle, we would not advise doing so. Any credible Estate Agent will want you to prove you can progress onward.

How Long Does it take to get an Agreement in Principle? 

It is possible to obtain an Agreement in Principle within 24 hours of getting in touch with an experienced mortgage advisor in Cambridge.

How Long Does an Agreement in Principle Last?

Typically, an Agreement in Principle will expire after 30-90 days. The good news is that this doesn’t mean you should apply for the first house you find. If your Agreement in Principle expires, it’s not difficult to obtain another ahead of making an offer.

Finding a mortgage only to be declined a mortgage can cause understandable disappointment. With this in mind, we recommend getting an Agreement in Principle as early as possible.

Can I Have Two Mortgages in Cambridge?

Mortgage Advice in Cambridge

The answer is uncertain, but most often than not yes, many situations require a person to have more than one Mortgage.

Here are some reasons why two mortgages can be valuable? 

  1. Do you want a second mortgage to raise money for your existing home? 
  1. Are you looking to rent out your existing home and purchase a new property? 
  1. Are you looking to help a family member out with a second mortgage? 
  1. Do you require a second mortgage to purchase a buy to let property? 
  1. Your name on an existing mortgage and you are looking to purchase a new property? 
     

Second Mortgage to raise money 

If you have equity in your home and are searching for a second mortgage to release some of this to fund a purchase or anything else, then our Mortgage Advisors in Cambridge can help.  A second mortgage for this purpose gets also referred to as a secured loan.  Quite often at this time if you are currently on a lenders standard variable rate, we can shop around and find a more competitive deal at the same time as releasing capital. A further advance with your current Lender is also an option. 

Second Mortgage to rent out existing home to purchase a new one 

If you are looking to move to a new house but keep hold of your existing property with the view to let it out, we will be able to help. Your second Mortgage will be a new residential one. This type of move is known as a let to buy and is becoming increasingly popular in recent years.

Second Mortgage to purchase a home for your children 

If you are exploring the options available to you of helping your children or grandchildren with getting on the property ladder, there are now many products that we can run through to achieve this. 

Second Mortgage for a Buy to Let 

Suppose you are looking to purchase a Buy to Let our team can help. You will get asked to produce a higher deposit for this than a residential mortgage. 

Named on existing mortgage and want to buy a new home 

Are you currently named on another mortgage and would like to purchase a new property? In any case, this is a situation that our team come across regularly, mainly due to divorce or separation and can often help. Whatever your situation is to get a second mortgage, being an experienced Mortgage Broker in Cambridge our Advisors can search 1000’s of mortgage deals on your behalf and recommend the most suitable product for you based on your situation. 

Dewsbury & Dewsbury: Two Generations Working Together

Meet Joe – Your Mortgage Advisor in Cambridge

Earlier on in the week, we welcomed our newest member, Joe Dewsbury, as a Mortgage Advisor in Cambridge in our Cambridgemoneyman team.

Father & Son Mortgage Advisors in Scunthorpe

Joe was introduced to the company by his father Wayne, who is also one of our leading Advisors with 36 years of legal experience behind him – you may recognise him from one of our social media posts or have interacted with him when popping into our office.

Prior to starting with us, Joe worked at a high street bank for 3 years but has already shown in the few days he has been with us a keen interest to dive headfirst and take on the exciting challenges of the company.

After spending a vast amount of time being mentored by our very own Matt Collinson, shown the ins and outs of each department, and been told where the good coffee is – we hope you’ll have a great connection with Joe, just like our customers have had with Wayne.

Joe was introduced to the company by his father Wayne, who is also one of our leading Advisors with 36 years of legal experience behind him – you may recognise him from one of our social media posts or have interacted with him when popping into our office.

Prior to starting with us, Joe worked at a high street bank for 3 years but has already shown in the few days he has been with us a keen interest to dive headfirst and take on the exciting challenges of the company.

After spending a vast amount of time being mentored by our very own Matt Collinson, shown the ins and outs of each department, and been told where the good coffee is – we hope you’ll have a great connection with Joe, just like our customers have had with Wayne.

Cambridgemoneyman.com & Cambridgemoneyman are trading styles of UK Moneyman Limited, which is authorised and regulated by the Financial Conduct Authority.
UK Moneyman Limited is authorised and regulated by the Financial Conduct Authority.
UK Moneyman Limited registered in England, registered number 6789312 and registered office 10 Consort Court, Hull, HU9 1PU.

© 2021 Cambridgemoneyman

Cambridgemoneyman, Nine Hills Road, Cambridge, CB2 1GE.

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