Can a mortgage broker provide an agreement in principle?

mrchuckbass

Hello

I have an agreement in principle from my bank. I don't know if this is the best offer, so I want to consult a mortgage broker. Can they be used to find better 'agreement in principles', or are they only used for the actual mortgage?

I am just starting the process now (don't have a property in mind yet), so thought I would check.

Also, I've come across the "Which" mortgage advisors - are they the best option to go for? They seem a bit pricey, but if they're good then its worth it I suppose

Thanks

ACG

There is little point in getting multiple agreements in principle, it can end up meaning multiple credit checks and that will not help you when you come to make an application as too many credit checks can affect your credit score.

You have an agreement in principle (AIP), that is all you need until you are ready to make an application.

The other issue with AIPs is that the best lender today, may not be the best lender tomorrow, so you could find you need another AIP. If you plan on using a broker, by all means find one, but I would be reluctant to get you a new AIP until you are ready to apply.

mrchuckbass

Thanks. So I should only contact 'Which' once I have found a house I want to buy, and want to proceed with a formal offer?

Regards

ACG

No, you can contact them beforehand, you will need to complete a factfind with them and get documents over to them anyway so best to be prepared rather than do it all last minute. All I am saying is that you do not need anymore AIPs until you are ready to get the ball rolling.

G_M

What is the point of an AIP? It is

a) to help you decide how much you can afford, and therefore which properties to look at, and

b) to indicate to a seller (and/or their estate agent) that you are a serious prospective buyer who can afford the property being offered for sale

So one AIP is perfectly adequate.

Once you have had an offer accepted you need to start the purchase process. Whether you use the same lender that gave you the AIP, or a different one, does not matter. All that matters is that you don't faff about for weeks before proceeding!

Wassa123

We never bothered with an AIP.

We live in a smallish town and saw the independant financial advisor there. Anytime the EA started to ask questions we just told them to confirm it with the advisor.