The purpose of a basic agreement is to assure the mortgage lender early and timely of its willingness to lend. The aim is to provide concrete facts about the applicant`s personal situation. To reach an agreement in principle, you must contact a mortgage lender directly or through a mortgage broker. You don`t need to make a basic deal, but it can sometimes help if you`re looking for a home (see “How an AIP can help” below). If you need a policy decision as soon as possible, apply and a professional advisor will call you back to arrange this for you. Your consultant can explain the process in more detail by understanding your current situation. You may urgently need a PIA to secure a property, or you may have refused a mortgage. Even if you just want to know how much you can borrow, our consultants can help. Typically, the deal takes mortgage lenders between 60 and 90 days, and an online mortgage promise should be exactly the same. Before your mortgage advisor can request the policy decision, they must conduct a detailed fact-finding with information and personal data. You`ll use it to determine your exact situation on which mortgage lender research should be based. Real estate agents will often want to make sure you`ll be able to get a mortgage on a property before making an offer, so it can be helpful to make a deal at that time. Once you`ve made the deal, you usually have six months to decide.

This can give you flexibility as you can decide whether or not to accept the mortgage company within this timeframe. In principle, the size of your contract can be a useful indicator of how much you can borrow. This allows you to search for a property in your price range. For anyone considered outside the “norm,” perhaps if they have an unfavorable loan, for example, the deal may take longer, as it may take much longer to research the best mortgage provider. Although it is often referred to as a “mortgage promise”, a political decision online or elsewhere does not really guarantee you the money. At this point, it is simply the lender`s system that has approved your application. Therefore, you should always provide the necessary documents to verify the numbers for which you have been approved, as well as ask the lender`s underwriting team to evaluate and approve the application as a whole. Barclays – Basic Agreement Online application Soft checks before the agreement in the main register phase as a reference or application, but never as a loan application. If you check your own credit report online, the review will appear as an application, and it`s okay for you to monitor your own record – it won`t negatively affect your credit score, and even the initial mortgage won`t be searched for slowly in principle. If you`ve turned down a mortgage after the deal in the basic phase or before, don`t lose hope – we`re here to help. Getting a mortgage in principle is usually the first indication that you are likely to get a mortgage.

It`s a great idea to make a basic deal because it tells you how much you can borrow. You can then start your property search with confidence and with a budget in mind. At this point, you can only provide the information without supporting documents. But you`ll need it when you submit your full mortgage application. You must provide personal documents before you can enter into an agreement in principle. Lenders and advisors are required by law to verify your personal circumstances and identity. To do this, you must provide some or all of the following documents and information: Learn more: Call 0808 189 2301. We work daily with specialists who work with these cases, and just because you`ve been rejected elsewhere doesn`t mean you`ll do it again. Offline AIP Form: If you want to apply for a basic agreement now, you can apply for it. The time it takes to reach an agreement in principle depends on a number of factors, but it can essentially be an immediate decision for many borrowers. A basic agreement, also known as a “policy decision,” “mortgage promise,” or “mortgage in principle,” is a certificate or statement from a lender that they would lend you a certain amount “in principle.” In principle, the lender can set certain conditions for the mortgage, for example .B indication of the type of property against which it can and cannot lend. In order to prove a fundamental decision, you can usually apply for a mortgage contract with mortgage lenders.

If you would like to apply for a mortgage contract today, fill out an application form first. This gives us enough information to find the best consultant and refer you so that he can manage a basic agreement for you. You can still be refused a mortgage even if you have received an agreement in principle. You may be denied a mortgage after a PIA in the following circumstances: At this point, they may not need receipts such as proof of your income, but it helps to have them available just in case. It`s also likely that they won`t go into as much detail about your expenses as they would with a full mortgage application. Nevertheless, it would be helpful to have some important details on hand (for more information, see Submitting your application). If you`ve had credit problems in the past, or if you have a limited credit history and aren`t sure what a bank or construction company might lend you, a basic agreement could give you extra security regarding your credit prospects. A basic agreement does not guarantee that you will receive a mortgage. This is simply the first step in describing what you can probably borrow and whether you are likely to be approved or not. A basic agreement is a preliminary agreement that a mortgage provider enters into to grant you credit based on an initial assessment of your situation, which may include your income, expenses and creditworthiness. It is also called a political decision (PID) or an approval in principle.

Some people also call it a mortgage promise. Most lenders will do a “difficult” loan search before offering you a basic agreement that will leave a trace in your loan file. In order to reach an agreement in principle, the following documents are required in most cases: This is why it is so important to contact the right lender from the start. It`s usually best to limit the number of mortgages in the basic contracts you apply for. You want to know that there is a good chance of being accepted before you even turn to the suppliers, and you can do this by talking to a broker experienced in the entire market who really knows the whole market. A fundamental decision shows that you can theoretically afford to buy a property. .