Halifax Mortgage In Principle Guide

Are you considering stepping on a property ladder for first time or may be looking for best remortgage deal, In both scenarios you will have first step in common is to get a Agreement in principle (AIP) , Mortgage in Principle (MIP)or even known as Decision in principle (DIP).

Let us understand what is Halifax mortgage in principle , what are the benefits and how to get one.

What is an AIP?

An Agreement in Principle  or Mortgage in Principle  is preapproval which tells you how much  mortgage you could get before you make your full mortgage application. It involves you mortgage lender check income affordability and credit scoring.

Agreement in principle is usually seen as the first step of the property buying process. Agreement in Principle is subject to full underwriting, and it does not give any guarantee of a mortgage approval.

Benefits Of  Halifax Mortgage In Principle ?

In property ownership having a Halifax mortgage in principle can be a benefit in several ways. Mortgage in principle can put you in a better position while doing a property search. Estate agents and sellers can see you as a serious buyer who can obtain a mortgage from high street.

Mortgage in principle can help to understand your property budget as Halifax does tell you tell you what max borrowing is available.

Having Halifax mortgage in principle can make sure that you fit in the lending criteria and income assessment.

Obtaining Halifax agreement in principle does not mean you will have to use the same lender or Halifax mortgage rate. This can be change at the time of your full mortgage application.

Process Of Getting Halifax Agreement In Principle.

The process of securing agreement in principle can be very easy if you choose to work with mortgage brokers.

You can go direct to your bank too. But that may take longer or you may not be able to compare mortgage unless you visit another bank.

Mortgage broker will collect all necessary information along with documents and discuss the options with you. After affordability checks are done your broker will complete the application which involves soft credit check.

If your application is successful, then you will have certificate of agreement in principle which explains the Halifax mortgage affordability amount and validity period. Bear in mind at this stage your mortgage is not guaranteed to be approve neither your mortgage rate is secure.

Documents Needed For Agreement In Principle.

Mortgage in principle is halfway of your mortgage application and needed almost similar documents as mortgage applications. A mortgage broker will ask for following basic documents to get agreement in principle.

• ID proof like passport or full driving license
• Income proof like payslips or tax returns
• Address proof like utility bill
• Bank statements for 3 months
• They may need to see credit report in case of poor credit score.

If you thinking about documents required to remortgage then they can be similar as mention above plus current mortgage statement.

Some Key Considerations When Applying For AIP

Agreement in principle can be very useful in-home buying process but some of the key considerations you need to be aware of.

• Halifax Agreement in principle carries soft credit check. Which means no footprint left on your credit file.
• All information needs to be accurate while applying for AIP. Any discrepancies may lead to delay or decline your mortgage by lender.
• Agreement in principle is not a formal mortgage offer from lender. AIP is a preapproval version of your mortgage subject to full assessment of income, outgoing and property valuation.

If Halifax Mortgage In Principle Is Declined Here What You Should Do?

In some cases, Halifax may decline mortgage in principle. If that happens to you then follow the steps mentioned here.

Know the reason:

Find out why AIP is decline. Is it income, lending criteria or credit scoring.

Work on problem:

Once you know what the cause of decline is then start to work on the issue. Speak to mortgage brokers, changing lender which may have favourable criteria than others.

Higher deposit:

Having higher deposit can help as your loan amount is reduce. Having increase deposit means some lender will have softer approach towards your mortgage application.

FAQS:

What Is The Validity Of Halifax Mortgage In Principle?

Halifax mortgage in principle is valid for 3 months .

Is It Possible To Get New Halifax Agreement In Principle?

Yes, it is possible to get new Halifax agreement in principle after 3 months. This will involve new soft credit search, and updated documents will be required.

Does AIP Affect My Credit Score ?

No Halifax runs only soft credit search which means your credit score is not affected.

Can Mortgage Be Decline After Mortgage In Principle?

Yes, mortgage can be decline due to change in credit scoring, income or criteria related issues. 

How Mariannafs Can Help To Secure Your Halifax Mortgage In Principle?

Mariannafs are excellent rated mortgage brokers who can help to secure your Halifax agreement in principle a lot quicker and best of all it is completely free (Terms apply)

Working with Mariannafs can benefit clients as whole of market mortgage brokers they can offer more choices and find best mortgage deals. We  can act extremely quickly on your mortgage needs and secure the DIP to make you ready on property hunt.

Get in touch with us to  know more about Agreement in Principle by contact form .

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