Mortgage Agreement in Principle: How Long Does it Take?
A mortgage agreement in principle (AIP) is a vital part of the home buying process. Essentially, it’s a confirmation from a lender that they would be willing to offer you a mortgage, subject to certain conditions. This gives you a good idea of how much you can borrow and helps you when making an offer on a property. However, one of the most common questions people ask is how long it takes to get an AIP.
The good news is that an AIP can often be obtained relatively quickly, and this timeframe is usually determined by the lender rather than the applicant. Many lenders can provide an AIP within 24 to 48 hours, and some may even be able to offer it within just a few hours.
The process for getting an AIP typically involves submitting an application to the lender, which includes information on your income, employment status, and credit history. You may also need to provide proof of identity, such as a passport or driving license.
Once the lender has all of the necessary information, they will carry out a credit check and assess your application. If they are happy with your application, they will then offer you an AIP. This can be sent to you by email or post and will confirm how much you can borrow and the interest rate that will be applied.
It’s worth noting that getting an AIP doesn’t guarantee that you will be offered a mortgage by the lender. It simply shows that they are willing to lend to you up to a certain amount, subject to further checks and requirements. The lender will still need to carry out a full mortgage application and may request additional information before making a final decision.
In terms of how long an AIP is valid for, this varies between lenders. Typically, an AIP is valid for around three to six months, although some lenders may offer longer or shorter periods. It’s important to check with the lender how long their AIP is valid for, as you may need to obtain a new one if it expires before you find a property.
In summary, obtaining a mortgage agreement in principle can be a quick and straightforward process, with many lenders able to provide one within 24 to 48 hours. However, it’s important to remember that an AIP is not a guarantee of a mortgage offer and that the lender may request further information before making a final decision. It’s also essential to check how long the AIP is valid for, so you can plan accordingly when looking for a property.