When you get a mortgage approved in principle, you are one step closer to buying your new home or property. Want to understand more about mortgage approval? Keep reading…
What is Mortgage Approval in Principle?
A Mortgage Approval in Principle (AIP) shows how much a lender is willing to lend you based on the information you provide. Getting an AIP lets you know if you will likely get mortgage approval. It also gives you an idea of the amount you can borrow. It’s not the official loan offer but usually forms the basis of it.
How to Get Mortgage Approval in Principle
First, search for the best mortgage rates and deals. Use an experienced mortgage broker you trust to find the best option for you.
Once you find a deal, you can apply for an AIP either through a mortgage broker (mortgage credit intermediary) or directly with the lender.
The fastest way to apply is online. You can also apply over the phone by calling us or schedule a meeting using our calendar.
You don’t need all the paperwork for a mortgage to get an AIP. However, lenders will verify your identity and ask for information about your:
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Income and spending
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Number of dependants
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Any existing properties you own
Lenders will also carry out eligibility checks. This includes a credit check, which reviews your credit history. It is usually a ‘hard search’ and appears on your credit report.
Mortgage Approval in Principle is typically quick and simple. You normally get a decision within 10 working days. However, current lender turnaround times can be longer — sometimes up to 20 to 25 working days. Because of this, you should start the process as soon as possible if you’re thinking about applying.
