Agreement/Decision in Principle

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changingmyways
changingmyways Posts: 7 Forumite
in Mortgages & endowments
Hi all

My partner and I are starting our search for our first him together. We haven’t yet been to see a mortgage advisor etc but have gotten an agreement in principle online from a bank. My question is, how accurate are these online and do they take into consideration your credit history etc.. are they a good indication?

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  • amnblog
    amnblog Posts: 12,456 Forumite
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    They are not something that should be undertaken to ‘test the water’.

    Get some professional advice.
    I am a Mortgage Broker

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • juniordoc
    juniordoc Posts: 366 Forumite
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    If your circumstances are not simple then you might want to see a broker.
    If they are, then using lenders online calculators should give you a reasonable estimate.
    The application for AIP will now appear in your history so do not apply for any more until you find a property you want to offer on.
  • ACG
    ACG Posts: 23,745 Forumite
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    AIPs can either be 100% spot on or not worth the paper they are printed on.

    If you enter anything incorrectly (or not as the lender would want you to enter it - the big one here is things like bonuses/overtime/tax credits) they can be worthless. Likewise, if there is only a soft credit check or worse still non at all - they are worthless.

    Dont get multiple AIPs, if they do involve a credit check, you could be shooting yourself in the foot.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
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