If you`re looking to purchase a property and need a mortgage, you may have heard the term “agreement in principle” (AIP) before. An AIP is a statement from a mortgage lender that states how much they are willing to lend you based on your financial and personal circumstances. It`s important to know that an AIP is not a guarantee of a mortgage; it`s simply an indication that the lender would consider lending to you.
If you`re applying for an AIP with Lloyds Bank, you may be wondering how long it lasts. Lloyds Bank`s AIPs are valid for 30 days from the date issued. After 30 days, your AIP will expire, and you will need to apply for a new one.
It`s essential to keep in mind that an AIP is not a binding agreement, and it doesn`t guarantee that you`ll be approved for a mortgage. It`s simply an indication that the lender is willing to lend you a certain amount based on the information you`ve provided. Once you`ve found a property you want to buy, you`ll need to apply for a formal mortgage application, and the lender will need to verify the information you provided in your AIP.
It`s also important to be aware that getting an AIP from one lender doesn`t mean that you`re limited to that lender. You can still shop around and compare mortgage deals to find the best one for you. However, keep in mind that making multiple applications for AIPs can potentially harm your credit score, as too many credit checks in a short period can signal to lenders that you`re desperate for credit.
In conclusion, a Lloyds Bank agreement in principle lasts for 30 days, and it`s not a guarantee of a mortgage. It`s essential to shop around and compare deals, but be cautious of making too many applications in a short period, as it can harm your credit score. When you`re ready to move forward with a mortgage, you`ll need to apply formally, and the lender will need to verify the information you provided in your AIP.