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Agreement in Principle & Soft Credit Searches in London

What is an agreement in principle?

For first time buyers in London, getting an agreement in principle (AIP) is an important first step towards securing a mortgage. Also known as a mortgage or decision in principle, this document gives you an idea of how much you could borrow before formally applying for a mortgage.

Although not a final commitment, an AIP provides an estimate of the maximum amount you’re eligible to borrow. It’s a helpful tool in the home-buying process, giving you a clear picture of your borrowing capacity. This helps narrow down your property search to homes that fit within your budget.

What is a soft credit search?

A soft credit search, also known as a soft credit check or inquiry, is a type of credit check that doesn’t affect your credit score. Soft searches are often used for background checks, pre-approval processes, or when you’re checking your own credit report.

When you apply for an agreement in principle, lenders typically perform a soft credit search to evaluate your creditworthiness without impacting your credit file. This means you can explore mortgage options without the concern of lowering your credit score.

What is a hard credit search?

Unlike a soft credit search, a hard credit search, also referred to as a hard credit check or inquiry, does impact your credit score. Hard searches occur when you apply for a mortgage.

Lenders perform a thorough examination of your credit history and financial background to evaluate your risk as a borrower. Each hard search leaves a mark on your credit file, and having multiple hard searches within a short period can temporarily lower your credit score.

Book Your Free Mortgage Appointment Today

As a reputable mortgage broker in London, we are dedicated to guiding you through the mortgage process and helping you understand the impact of credit searches.

With access to a diverse array of lenders and mortgage products, we can find deals tailored specifically to your unique circumstances. During your free mortgage appointment, we will recommend the most suitable lenders based on your financial situation and preferences.

Moreover, our mortgage advisors in London can help you in avoiding unnecessary hard credit searches by connecting you with lenders who are more likely to approve your application based on softer search criteria.

By capitalising on our expertise and industry knowledge, we can simplify the process of obtaining an agreement in principle (AIP) and ensure that you approach lenders who are inclined to offer favourable terms.

Our mortgage advisors in London will walk you through each stage of the mortgage application journey, from the initial assessment to the final approval, providing invaluable support and advice throughout.

With our help, you can obtain an agreement in principle within 24 hours of your appointment, empowering first time buyers in London with the confidence that they are making well-informed decisions in line with their long-term financial objectives.

Date Last Edited: April 9, 2024

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