How long is an agreement in principle generally good for?

smartmove07

I want to start looking in the next few weeks but want to get the mortgage approved before time. How long does a AIP from a bank generally last for?

Dan_Collins_2

1 month, 3 months, 6 months or until your situ changes or the lender changes criteria!

dunstonh

In reality, it isnt good for anything and isnt a guarantee you will get the mortgage.

It is just a basic agreement that says "based on what you have told us so far, we have no reason to not lend you £xyz". However, when you do a full application, the information could be different and get refused. Or the lender may have changed their criteria a week or two later.

AIPs are useful for you to know that you should be ok going to a certain level of borrowing if you have told the truth and have nothing to hide. Thats about all they are good for though.

luckyfool

Normally between 30 and 90 days. Some lenders offer a Binding Decision which is more solid than a standard agreement in principle, where this is the case it's more normal for them to only be valid for 30 days.

EBS_3

Just a couple of questions about AIP's:

Does it cost to get an agreement in prinicpal?
Can you get them online, if so where?
How quickly can you get the agreement?

Thanks

luckyfool

If you know who the lender you want a deal from then often you can get one directly on their website, or over the phone with one of their advisers. If you are dealing with a broker then they have access to the lenders systems and can normally get an AIP in 10-15 minutes with you on the phone.