Your questions, answered.

An Agreement in Principle — sometimes called a Decision in Principle or Mortgage in Principle — is a statement from a lender saying how much it may be willing to lend you, based on the information you provide and an initial credit check.

It isn’t a guaranteed mortgage offer, but it shows estate agents and sellers that you’re a serious buyer and gives you a realistic budget before you start viewing properties.

Most AIPs are valid for between 30 and 90 days, depending on the lender. If yours expires before you find a property, it can usually be renewed — and I’ll keep an eye on the dates for you.

If your circumstances change in the meantime, such as a new job or a change in income, let me know, as the lender may need to reassess.

Many lenders use a “soft” credit search for an AIP, which is visible only to you and doesn’t affect your credit score. Some lenders use a “hard” search, which is recorded on your credit file.

A single hard search is unlikely to have a big impact, but several in a short space of time can. I’ll tell you which type of search a lender uses before we go ahead.

Once a full application is submitted, many lenders issue a mortgage offer within around two to four weeks, although it can be quicker or take longer depending on the lender, the valuation and how complex your situation is.

From offer to completion for a purchase, the timescale mainly depends on the legal work and the property chain. Having your documents ready at the start helps avoid delays.

Every lender is slightly different, but you’ll typically be asked for:

• Photo ID, such as a valid passport or driving licence
• Proof of address, such as a recent utility bill or council tax statement
• Your last three months’ payslips and your latest P60, if employed
• Your last three months’ bank statements
• Proof of your deposit and where it has come from, including any gifted deposit
• Details of any existing credit commitments
• If self-employed, your tax calculations and tax year overviews (or accounts)

Yes. Lenders usually want to see at least two years of trading history, evidenced by your SA302 tax calculations and tax year overviews from HMRC, or accounts prepared by an accountant. Some lenders will consider one year’s figures.

How your income is assessed depends on whether you’re a sole trader, in a partnership or a company director, and lenders treat these differently — which is where advice can really help.

For a residential mortgage, most lenders ask for a deposit of at least 5% of the property price. A larger deposit lowers your loan to value (LTV), which can open up a wider choice of mortgages and potentially lower rates.

Buy-to-let mortgages usually need a larger deposit, often 20–25% or more. You’ll also need to budget for costs such as legal fees, surveys and, where applicable, stamp duty.

The main difference is whether your interest rate — and so your monthly payment — can change during your deal.

• Fixed rate: your interest rate stays the same for an agreed period, often two or five years, so your monthly payments are predictable.
• Tracker: your rate follows the Bank of England base rate plus a set margin, so payments rise or fall when the base rate changes.
• Discount: your rate is set at a discount to the lender’s standard variable rate, which the lender can change.
• Standard variable rate (SVR): the rate many mortgages move onto when a deal ends. It is set by the lender and is often higher than other deals.

Simply get in touch — call or WhatsApp me on 07757 762424, or send an enquiry using the form below. We’ll have an initial chat about your plans and circumstances, with no obligation.

From there, I’ll explain your options, let you know which documents I need and guide you through every step until your mortgage is in place.