An Agreement in Principle (AIP) is a document that indicates a lender’s readiness to offer you a mortgage based on your income and affordability evidence.
In the mortgage application process, obtaining an AIP is highly significant. It enables you to make an offer on a property and may assist you in negotiating the purchase price with the seller.
For instance, if two potential buyers approach a seller, one with an AIP and the other without, the seller is more likely to choose the buyer with the AIP. This is because the buyer with the AIP has already received pre-approval and can proceed more quickly through the mortgage process.
Typically, AIPs are valid for 30-90 days and can be renewed upon expiration. To obtain an AIP, you can seek assistance from a mortgage broker in Birkenhead, like ourselves. We can generally arrange an AIP within 24 hours of your mortgage appointment.