How Long Does a Mortgage in Principle Last in Cambridge?

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Obtaining an mortgage agreement in principle?

When Should I Get an Agreement in Principle?

What information does a mortgage lender look at for an AIP?

What is the difference between an agreement in principle and a mortgage offer?

Will having an agreement in principle taken out affect my credit score?

What are the benefits of having an agreement in principle?

To obtain an agreement in principle, a reliable mortgage broker in Cambridge like us can assist you by acting on your behalf and communicating with the mortgage lender. You can schedule a free mortgage appointment with one of our experienced mortgage advisors in Cambridge either through our Get Started online form or by giving us a call.

During this appointment, your mortgage advisor in Cambridge will request proof of your income, employment, credit history, and other relevant personal information that will be helpful in assessing your eligibility for a mortgage.

Once you’ve provided this information, we can usually obtain your agreement in principle within 24 hours. This will give you an approximate idea of how much you may be able to borrow, providing you with confidence as you navigate the property market.

Obtaining an Agreement in Principle

Obtaining a mortgage agreement in principle can be a smart move before starting your property search, as it gives you a general idea of your borrowing capacity. This helps you avoid wasting time on properties that are beyond your financial means. As a first time buyer in Cambridge, this can save you a lot of time!

Additionally, having an agreement in principle can give you an advantage when making an offer on a property, as sellers and estate agents may view you as a serious buyer. However, it is important to note that an agreement in principle is not a guarantee of a mortgage, but rather a useful tool in the home-buying process.

When should I get an Agreement in Principle?

We recommend arranging your mortgage agreement in principle before searching for a new property. This pre-agreement provides you with a general estimate of the amount you can borrow, enabling you to avoid wasting time on properties that surpass your financial capacity.

Furthermore, holding an agreement in principle can enhance your position when making an offer on a property. Sellers and estate agents are more likely to perceive you as a committed buyer, granting you an advantage over those who lack an agreement in principle. When moving home in Cambridge, if another buyer has an AIP and you don’t, they may have the upper hand against you.

It is important to recognise that an agreement in principle does not guarantee a mortgage but serves as a valuable aid in the home-buying journey.

What information does a mortgage lender look at when you apply for an agreement in principle?

When applying for an agreement in principle, your mortgage advisor in Cambridge will collect personal information such as your full name, date of birth, current address, length of time at your current address, employment status, length of time in your current job, income details, regular outgoings, credit history, and more.

This information is used by the mortgage lender to assess how much they are willing to lend to you. The lender may also require additional information, such as bank statements or proof of income, before making a final decision.

What is the difference between an agreement in principle and a mortgage offer?

An agreement in principle is different from a mortgage offer. An agreement in principle provides an initial indication of the amount a mortgage lender is willing to lend based on the information you have provided. It is not legally binding and does not guarantee a mortgage offer.

A mortgage offer, on the other hand, is a formal agreement from a mortgage lender confirming that they will lend you the necessary funds after conducting a thorough assessment. It is one of the final stages of the mortgage process and sets out the terms and conditions of the mortgage.

Will having an agreement in principle taken out affect my credit score?

Typically, obtaining an agreement in principle for a mortgage will not significantly impact your credit score, as most mortgage lenders perform a soft credit check that is not visible on your credit report. However, some lenders may perform a hard credit check during the agreement in principle process, which could affect your credit score, especially if you’ve applied for multiple agreements in principle within a short time.

It is important to limit the number of mortgage applications you make and only apply for an agreement in principle when you are genuinely considering purchasing a property.

What are the benefits of having an agreement in principle?

Having an agreement in principle provides several benefits. It gives you a clear understanding of how much you can borrow, helping you search for properties within your budget and saving you time.

It can also give you a competitive edge when making an offer, as sellers may prefer buyers who already have an agreement in principle.

Additionally, it can expedite the mortgage application process once you find a property to purchase. However, it’s important to limit your applications and only apply for an agreement in principle when you are genuinely interested in buying a property.

Get an Agreement in Principle

Before making any property offers, we recommend speaking with a mortgage broker in Cambridge. By obtaining an agreement in principle beforehand, you can determine how much you can borrow and narrow your property search within your budget.

As a mortgage broker in Cambridge, we can provide an agreement in principle within 24 hours of your initial mortgage appointment. Book your free mortgage appointment today and let us assist you in obtaining your agreement in principle as you embark on your mortgage journey with the support of a trusted mortgage broker in Cambridge.

Date Last Edited: December 6, 2023