Neither an MIP nor an PIA is a contract. No one guarantees you a mortgage. You still have to go through the entire mortgage application process – a much more detailed review of your finances – and you may be rejected. It`s not the happiest thing, but it`s good to be ready. I emphasize that even if a mortgage lender does a «soft» search in the policy decision, it is replaced by a «hard» search as soon as you apply for a full mortgage. Lenders and brokers sometimes say «mortgage in principle» and «agreement in principle» as they are the same thing. Spoiler alert: it`s not you. This information was collected on 27 April 2020 and should be verified with the lender concerned before submitting it to the current situation. A credit report is a record of how you managed your money.

It shows things like your debt, if you paid bills on time, your memory cards, where you asked for credits when you paid off those credits… You get the picture. Their agreement in principle lasts about 30 to 90 days depending on the lender. If your circumstances or credit history change during this period (for example. B miss a credit card payment), your AIP will change validity. The Barclays Consumer Site offers a «soft search» but is a diluted agreement in principle, in which only a few credit data are verified, this is not a complete decision-making principle and could be misleading. For a reliable complete decision that leaves a «hard» footprint, you need to talk to a Barclays Advisor or an independent mortgage broker like Niche Advice. Credit Checks: The Difference Between a PMI and an AIP You must provide some details about your income, your savings and your deposit amount. Then, your lender or broker will automatically calculate an estimate of the mortgage you might receive. They may be asking for your credit commitments, but they are not looking at your personal credit history in the PMI phase.

Before you ask for an agreement in principle, check your credit report first. You can do this with Experian, Equifax and TransUnion (formerly CallCredit) – agencies that are able to establish your credit rating in the UK. They calculate it a little differently, so it is worth getting a report of all three. Basically, it`s worth checking whether your lender is using a hard or gentle search in advance. If you use a difficult search, it is displayed on your registration as a complete mortgage application. One or two of them won`t affect your score too much, but several over a short period of time can really pull them down – because it looks like you would have been rejected several times in a row. It`s not great. A broker`s MIP is based solely on the information you give.

It would still be subject to lender criteria and credit checks. An agreement in principle (AIP) is the next step after receiving a PMI. The first stage of a mortgage is an agreement in principle (AIP) and may include a credit check depending on the mortgage lender.