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This article does not constitute advice. Professional advice should be taken prior to acting on any part of it. Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.
Q: What is an Agreement In Principle?
Answer: An agreement in principle is a statement from a lender confirming that they are willing to let you take out a mortgage up to a predetermined amount.
Having an Agreement In Principle before you start house hunting is essential – it shows that you are a serious buyer and that if you were to make an offer, you wouldn’t have trouble securing a mortgage.
An Agreement In Principle may also be referred to as a Mortgage in Principle, a Decision in Principle, or even a Mortgage Promise.
To obtain an Agreement in Principle, you’ll need to provide the lender you are working with some basic information such as your income and other financial details. With this, they can conduct a credit search to ascertain if they can provide you a mortgage and if so, how much they can lend to you.
It’s important to remember that if anything changes regarding your financial situation it could affect the amount your provider has agreed to lend, or they may even rescind the offer entirely if the changes impact your credit significantly.
It may feel intimidating trying to acquire an Agreement in Principle while searching for property, but the mortgage advisors at Dental & Medical Financial Services will give you bespoke advice about when you should seek an Agreement in Principle and the lenders who will offer the best mortgage deals.
If you’re in need of guidance, contact us at the start of your home-buying journey so we can be there with you every step of the way.