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Welcome to our Mortgage Agreement in Principle page at Mortgages UK.

Mortgage Agreement in Principle

An agreement from the lender that they would be prepared to lend you a particular amount to buy a property.

The lender is prepared to lend you a given amount based on the information you have provided so far.

To apply for an Agreement in Principle you will need to complete a form giving details of your income, employment status and your financial commitments.

You will be asked to provide identification, e.g. passport, to the lender, and proof of earnings.

Gives you an idea of how much a given lender will lend to you for your mortgage.

It is not legally binding on the lender, nor is it a guarantee that the lender will provide the loan. The lender will still need to check your ID, verify all the information you have given and run a credit check before making you a legally binding offer of a loan.

It is not legally binding on you. You would not be under obligation to borrow from a lender that has provided you with an Agreement in Principle.

There is no charge for an Agreement in Principle.

Note, an Agreement in Principle may involve a credit check, but the lender should obtain your consent before running the check. If too many credit checks are done within a short period, it can damage your credit rating and this in turn can lead to your mortgage application being turned down.

The Agreement in Principle is valid for a set amount of time, usually up to three months.

If you have the Agreement in Principle for a given amount, then you can reasonably make offers on properties up to this amount. A seller may ask for proof of your Mortgage Agreement in Principle before taking your offer seriously.

An Agreement in Principle is not binding on either you or the mortgage lender. If you are approved for an Agreement in Principle you aren't under any obligation to take out a mortgage with the lender.

Thanks for visiting our Mortgage Agreement in Principle page. We hope it helped find what you were looking for.

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