• Welcome to the ShrimperZone forums.
    You are currently viewing our boards as a guest which only gives you limited access.

    Existing Users:.
    Please log-in using your existing username and password. If you have any problems, please see below.

    New Users:
    Join our free community now and gain access to post topics, communicate privately with other members, respond to polls, upload content and access many other special features. Registration is fast, simple and free. Click here to join.

    Fans from other clubs
    We welcome and appreciate supporters from other clubs who wish to engage in sensible discussion. Please feel free to join as above but understand that this is a moderated site and those who cannot play nicely will be quickly removed.

    Assistance Required
    For help with the registration process or accessing your account, please send a note using the Contact us link in the footer, please include your account name. We can then provide you with a new password and verification to get you on the site.

Mortgage advice

lee_sufc

Coach
Joined
Oct 25, 2003
Messages
577
Location
Southend
We're first time buyers and have recently received an "Agreement in Principle" for a mortgage. Does this mean that we have more or less for the mortgage or are there still more checks to be done?
 

Ron Manager

formerly Libertine
Joined
Jan 21, 2007
Messages
5,627
Location
Brisbane, Australia
It means that the bank are happy 'in principle' to lend you the money you applied for. They have agreed that based on the info you have given them but they may well check some of that information (by requesting payslips, references, bank statements, ID etc).

When you receive your 'offer' or 'mortgage loan agreement' that is when you have had your loan agreed and can look to exchange contracts and ultimately complete on your purchase. That offer is usually valid for 3 to 4 months, if there are delays and you are unable to complete in that time the bank will need to re-assess your case and possibly request up to date status before issuing a new one.
 
Last edited:

lee_sufc

Coach
Joined
Oct 25, 2003
Messages
577
Location
Southend
It means that the bank are happy 'in principle' to lend you the money you applied for. They have agreed that based on the info you have given them but they may well check some of that information (by requesting payslips, references, bank statements, ID etc).

When you receive your 'offer' or 'mortgage loan agreement' that is when you have had your loan agreed and can look to exchange contracts and ultimately complete on your purchase. That offer is usually valid for 3 to 4 months, if there are delays and you are unable to complete in that time the bank will need to re-assess your case and possibly request up to date status before issuing a new one.

So the credit checks etc have been done already? So if I decide to make an offer on a property, I just have to supply any information / proof they request?
 

Ron Manager

formerly Libertine
Joined
Jan 21, 2007
Messages
5,627
Location
Brisbane, Australia
Yep, credit checks should have been done. You don't actually need to have an agreement in principle before you can make an offer on a house anyway (despite what some Estate Agents may tell you) as there is no commitment on your part at that stage to buy the property. It's not a bad idea to have an AIP though, as you know what you can realistically borrow and work within that budget. You will need an offer before you exchange contracts however, because it's at that point you are commited to buying it.
 
Top