Barclays Mortgage Agreement in Principle: What You Need to Know
Buying a house is an exciting but daunting prospect. One of the first steps in the homebuying process is obtaining a mortgage agreement in principle (AIP). An AIP is a document that confirms how much Barclays is willing to lend you based on your income and credit score. It’s just one step, but it can make a big difference in the homebuying journey.
What is a Mortgage Agreement in Principle?
An AIP is not a formal mortgage offer, but rather an indication of how much the lender is willing to lend you. An AIP is also known as a ‘Decision in Principle’ (DIP) or ‘Mortgage Promise’. It’s a way for borrowers to check how much they can borrow before they start looking at properties. An AIP can be useful for several reasons:
– An AIP can give you an idea of how much you can afford to spend on a property.
– Some estate agents and sellers may ask to see an AIP to prove that you’re a serious buyer.
– An AIP can give you a head start on the mortgage application process.
How to Get an AIP from Barclays
Getting an AIP from Barclays is a fairly straightforward process. You can apply for an AIP online, over the phone or in person at a Barclays branch. Here’s what you’ll need to provide:
– Personal details such as your name, address and date of birth
– Employment details such as your job title, employer’s name and address and length of time in the job
– Income details including your salary and any other income such as rental income or bonuses
– Details of any outstanding debts or credit commitments
– Information about the property you’re hoping to buy, including the price and address.
Barclays will use this information to give you an AIP within a few hours. They will also perform a credit check to assess your creditworthiness. An AIP is usually valid for up to 90 days, after which you may need to apply for another one.
What Happens Next?
If you’re happy with the AIP from Barclays, you can start house hunting with confidence. However, an AIP is not a guarantee that you’ll be offered a mortgage. You’ll still need to go through the full mortgage application process, which involves undergoing affordability checks, a valuation of the property you’re buying and a full credit check.
In summary, a Barclays mortgage agreement in principle is an important step in the homebuying process. It gives you an idea of how much Barclays is willing to lend you, and can help you narrow down your property search. However, it’s important to remember that an AIP is not a guarantee of a mortgage, and you’ll still need to go through the full application process.