An agreement in principle sees a lender state what they might be prepared to loan you based on specific information you supply.Providing certain information to the lender, including details on income, will enable them to decide if you are 'mortgageable' and for how much.When requesting an agreement in principle from a mortgage lender, you’ll need to provide: • Details on your income, including payslips or accounts if you’re self-employed• Information on your debt and spending• Details on any credit agreements you have• Three years of previous addresses
Once you have sorted your finances and worked out the maximum price you are able to pay for your new home, you are ready to seek a mortgage agreement in principle. Speak to a lender or mortgage broker to explore mortgage products and interest rates that work for you. Using a broker can be a good way to get an idea of the kinds of mortgages on offer across the market, but always look to use a fee-free broker. Once your lender has details on your income and other key information, they will undertake a credit check to establish your credit history. All being well, you can have an agreement in principle quite quickly. Mortgage agreements in principle are generally valid for between 60 and 90 days.
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