what is an agreement in principal

markeymark

hey folks, ive applied over the phone to north rock, for a top up secured loan, ive been agreed in principal and its now away to the underwriters. I have received the key facts illustration from them. Can anyone explain what further checks the underwriter will carry out?

_Andy_

Payslips, possible re-val, checking bank statements, confirming income/outgoings, debt/income ratio, that kind of thing

markeymark

will the credit checks have been carried out, it isnt a big mortgage i have, with this loan takes it to 50k with my earnings of just over 25k

Astaroth

There are multiple levels of credit checking - first is where they pass all your answers to the credit reference agency, and the agency runs a pre agreed scoring system and simply returns a value, the second is where they simply identify you and the credit reference agency gives them access to see what is currently held in the "public" section of your file.

Generally 1 happens to get the in principle and 2 occurs if the underwritters feel it is necessary