If you're a first-time buyer or looking to get a mortgage, securing a Mortgage Agreement in Principle (also known as a Decision in Principle) is one of the first steps to take. At Montgomery Financial, we guide you through every step of the mortgage in principle process — helping you understand your borrowing potential, prepare your documents, and present yourself as a serious buyer to estate agents and sellers..
A Mortgage Agreement in Principle (AIP) is an early assessment by a mortgage lender or broker that gives you an estimate of how much you can borrow based on your current financial situation. It is not a formal mortgage offer, but it gives you confidence when house hunting and strengthens your offer when bidding on a property. Also referred to as a decision in principle or mortgage promise, this is a key step if you want to get a mortgage and secure favorable mortgage deals. A mortgage in principle gives you an estimate and helps you get a mortgage in principle faster when you find a home you want to buy.
We’ll explain how to apply for a mortgage in principle, assess your credit rating and credit history, and gather the financial information you need to begin. We also help you understand your chances of receiving your mortgage offer and how to make the mortgage process simple.
Lenders or brokers will ask for ID, payslips, bank statements, and details about any existing debts. This helps evaluate your mortgage affordability in the current mortgage market. Applying for a mortgage begins with presenting complete and accurate documents.
We’ll explain whether a hard or soft credit check will be used, which is important for those looking for a mortgage. A soft check won’t affect your credit score, but a hard credit check might impact your credit rating temporarily, which is crucial for those looking for a mortgage. We’ll help you understand how this principle affects your credit score and advise on managing your credit history. This part of the formal mortgage application is crucial to success in obtaining a mortgage term that suits your needs.
You’ll typically receive your mortgage agreement in principle within 24 hours, although this can’t be guaranteed. Timelines may vary depending on your circumstances and the lender’s requirements. With this, you can make offers confidently knowing how much you’re able to borrow. A mortgage in principle gives you an estimate, not a guarantee, of your borrowing power.
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Approval times can vary, but most agreements in principle are issued within a few hours to two days. The agreement is usually valid for 60 to 90 days, giving you a strong position when making offers on your first home and helping you get a mortgage in principle within that timeframe.
An agreement in principle typically lasts 60 to 90 days. If it expires, you may need to reapply. A change in your financial situation may also require a new credit check. Keeping your agreement in principle updated helps you remain a serious buyer throughout the house buying process.
A decision in principle is a lender’s initial assessment of how much you might be able to borrow. It’s based on a soft or hard credit check and a review of your credit report and financial situation. While it’s not a guarantee, it signals to estate agents that you’re ready to buy a home.
Yes, we cater to first-time buyers looking for a mortgage. Refusals can happen due to issues with your credit score, income stability, high debt levels, or errors in your application when applying for a mortgage product. Our mortgage advisers help you correct issues and find suitable lenders.
Depending on the lender, your mortgage in principle might involve a soft or hard credit check, which can impact your ability to secure a mortgage deal. Soft checks don't impact your credit score, but hard checks can leave a temporary mark. We’ll guide you through managing credit checks so you can protect your score.
If you’re applying for your first mortgage, our expert guidance helps you navigate the formal mortgage application and understand every step from the agreement in principle to receiving your mortgage offer. We provide tailored support for mortgages for first-time buyers, ensuring they understand the steps they need to take to get approved.
A mortgage in principle gives an estimate based on your financial details. It helps guide your property search and demonstrates credibility in the financial services sector.
Once you have your agreement, you can begin the home search and make offers. Once accepted, you’ll complete a full mortgage application and provide formal documents for assessment to get a decision.
Yes, you’re not tied to any lender after receiving your mortgage in principle, giving you flexibility in the mortgage market. You can compare rates and apply through a new broker or lender to find the best mortgage product available.
No. Approval is subject to a full mortgage application and detailed checks of your financial situation.
We’ll help you buy a home with confidence and clarity. If you’re looking for a mortgage broker, contact us now.
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Whether you're buying your first home, thinking about your first mortgage, or just exploring options, we’ll make the entire process a lot easier.
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Use our mortgage calculator to estimate how much you could borrow, explore repayment scenarios, and compare mortgage rates. These tools support your home buying journey and make the mortgage process easier for those looking for a mortgage.
At Montgomery Financial, we support first-time buyers, remortgage applicants, and home movers. Whether you're looking to get a mortgage in principle or complete a full application, we offer mortgage advice tailored to your situation. We help you find a mortgage broker, lender or product that suits your goals.
We're authorised and regulated by the Financial Conduct Authority. Your home may be repossessed if you do not keep up with repayments on your mortgage.
All people working within Montgomery Financial share those values and beliefs and support the reinforcement of the fair treatment of our customers.
The information contained in this website is subject to UK regulatory regime and is therefore intended for consumers based in the UK
There may be a fee for mortgage advice, the exact amount will be based on your circumstances and will be confirmed upon initial consultation. A typical fee of £476 is payable on application for residential mortgages and £673 for buy to let mortgages.
Montgomery Financial is a trading style of Montgomery FS Ltd, which is an appointed representative of The Right Mortgage Limited, which is authorised and regulated by the Financial Conduct Authority. Montgomery FS Ltd is registered in England and Wales no: 12305679. Registered Address: The Granary 8 Strixton Manor Business Centre, Strixton, Wellingborough, NN29 7PA
Your home may be repossessed if you do not keep up repayments on your mortgage.
