Navigate Your Mortgage Journey As A First-Time Buyer With Us

An Agreement in Principle (AIP), also known as a Mortgage in Principle (MIP), Decision in Principle (DIP), or Mortgage Certificate, is a document or statement from a lender that indicates how much they might be willing to lend you based on an initial assessment of your financial situation. It forms a key part of the house buying process and most estate agents would want to see sight of this when you offer on a potential property. In recent years many estate agents want evidence of this before they will take any viewings.  

Below are some of the key questions our advisors often get asked with their informative answers:

 

How do I obtain an Agreement in Principle (AIP)?

 

As part of the service we offer, when you feel ready to start your house hunting we will provide you with the required documents to give you the confidence to make offers, this includes the Agreement in Principle.

 

Does it cost anything to get one?

 

Here at Hallowes Mortgages we are completely Fee Free, this means obtaining your AIP doesn’t cost you a penny.

 

Will an Agreement in Principle have a negative effect on my credit score?

 

It will differ from each lender as to whether they run a hard or soft credit check. We will always aim to use a lender offering a soft credit check where possible as this will not impact your credit score. However, dependent on your circumstances this may not always be possible, one thing you can be assured of is we will discuss any searches whether they be soft searches or hard searches with you beforehand so you are fully informed.

 

What information do you need from me to obtain one?

 

As part of the process we will obtain your details to ensure we offer you an informed and accurate picture of what your mortgage journey will look like, as such when you require your proof of mortgage we generally have what we need to obtain one.  Typically this would be your personal details - name, date of birth, address history etc.  Income and Expenditure including details of any existing credit commitments and how much deposit you have available for your purchase.

 

How long does it last and what happens if it runs out and I’ve still not found a house?

 

Typically most agreement in principles are valid for 3 months, however this can differ dependant on the lender producing the certificate.   If it expires before you’ve found a house it can simply be renewed ensuring you’ve always got valid proof as and when needed for your future purchase.

 

Once I’ve got my Agreement In Principle do I then have to stick with that lender when I’ve found a property?

 

No, when you’ve found your dream property and ready to fully apply we will make a full recommendation on the best deal to suit your needs regardless of which lender your agreement is with. 

 

Why Get an Agreement in Principle?

Clarity on Budget: An AIP helps you understand how much you can potentially borrow, giving you a clear idea of your budget for purchasing a property.
Confidence to Sellers: It can make you a more attractive buyer, as it demonstrates that you’re financially prepared to proceed with the purchase.
Confidence to you: Having an AIP shows that you’re a serious buyer who has already taken steps to secure financing. This signals to sellers and estate agents that you’re not just casually looking but are prepared and committed to purchasing a property.
Reduced Risks of Surprises: An AIP reduces the risk of unexpected surprises later in the buying process, such as being denied a mortgage after your offer is accepted. Knowing that a lender has already provisionally agreed to lend you a certain amount gives you confidence that your financing is likely to be approved, provided your circumstances don't change.