Agreement in Principle

SGE1

How easy is it to get one of these? Are any credit checks carried out? How long are they usually valid for?

koexelek

1) Very easy to get one.... passing one is a different matter though :rotfl:
2) Yes
3) anything from 1 to three months, depending on the lender

dunstonh

...although they dont actually carry any weight from a legal stand point and even a day after they are issued, the lender can change their mind.

It just tends to satisfy some estate agents who may think you are not serious buyers.

herbiesjp

Although they can uncover "unknown" credit problems, which can save nasty surprises down the line for all concerned in the buying chain

SGE1

So presumably, if you get an agreement in principle, they search your credit files, and then they check them again when you actually apply for a mortgage? If these two happen in quick succession, doesn't that damage your credit rating?

And on a separate note, are they worth it? Would it not be quicker to secure a mortgage if you've got the appropriate agreement in principle set up beforehand? Ot does it not matter?

koexelek

SGE1 wrote: »

So presumably, if you get an agreement in principle, they search your credit files, and then they check them again when you actually apply for a mortgage? If these two happen in quick succession, doesn't that damage your credit rating?

And on a separate note, are they worth it? Would it not be quicker to secure a mortgage if you've got the appropriate agreement in principle set up beforehand? Ot does it not matter?

If you apply within the time the AIP lasts, they don't usually score you again.

When you fully apply for a mortgage, they will do an AIP initially anyway ( assuming you don't already have one)

feisty1

In addition to an AIP most lenders now do another credit check before issuing offer.