Why do you need an Agreement in Principle (AIP) as a First-Time Buyer?

Getting an Agreement in Principle (AIP), also known as a Mortgage in Principle, is a smart move for any buyer, but it’s especially beneficial for first-time homebuyers. Here’s why:

• Know Your Budget: An AIP gives you a realistic idea of how much a lender may be willing to offer, helping you focus your property search within your financial reach.
• Confident House Hunting: With an AIP, you can confidently view properties and make offers knowing you have pre-approval for a specific mortgage amount.
• Seller Confidence: Sellers and estate agents often prefer buyers with an AIP, demonstrating your seriousness and financial readiness.
• Competitive Edge: In a competitive market, having an AIP can give you an advantage over other buyers who haven’t secured one.
• Speeds Up the Process: An AIP streamlines the mortgage process once you find a property, as the lender has already done some of the groundwork.

Getting your AIP An AIP is not legally binding, but it’s a strong indicator of how much you might be able to borrow. Once you find a property and make your mortgage application, the lender will conduct more detailed checks (including credit checks, property valuation, and affordability assessment).

Discuss how you can get an Agreement in Principle by contacting us.   

 

Published May 2025

It is important to take professional advice before making any decision relating to your personal finances. Information on this page is based on our current understanding and can be subject to change without notice and the accuracy and completeness of the information cannot be guaranteed. It does not provide individual tailored advice and is for information purposes only.