London and Country Agreement in Principle (AIP) Credit Check: What You Need to Know

If you`re looking to buy a property in the UK, you`ve probably heard of an Agreement in Principle (AIP). An AIP is a statement from a lender that they are willing to lend you a certain amount of money to buy a property. It can be useful to get an AIP before you start house hunting as it can give you an idea of what you can afford to buy.

London and Country (L&C) is a mortgage broker that can help you find a lender and get an AIP. But before you apply for an AIP through L&C, you need to know about the credit check.

What is a credit check?

A credit check is when a lender checks your credit history to assess your ability to repay a loan. Your credit history includes things like your credit score, any outstanding debts, and your repayment history. Lenders use this information to determine whether you are a reliable borrower.

Why is a credit check important?

A credit check is important because it can affect your ability to get a mortgage. If you have a poor credit history, you may be considered a risky borrower, and lenders may be less likely to approve your loan application. If you have a good credit history, lenders may be more willing to lend to you and may offer you better interest rates.

What credit check does L&C do for an AIP?

When you apply for an AIP through L&C, they will do what`s called a “soft” credit check. This means they will look at your credit history, but it won`t leave a mark on your credit file. This is important because if you have too many “hard” credit checks on your file, it can lower your credit score.

L&C will use a credit reference agency called Experian to check your credit history. Experian is one of the UK`s largest credit reference agencies and provides credit reports to lenders.

What happens if I don`t pass the credit check?

If you don`t pass the credit check, L&C may not be able to give you an AIP. However, it`s worth noting that L&C works with a range of lenders, and each lender has different criteria for lending. So even if one lender doesn`t approve your application, another might.

If you do have a poor credit history, L&C can provide you with advice on how to improve your credit score. This may involve paying off outstanding debts, making sure you`re on the electoral roll, and avoiding making too many credit applications in a short period.

In conclusion, an AIP from L&C can be a useful tool when buying a property in the UK. But before you apply, it`s important to understand the credit check process and how it can affect your ability to get a mortgage. By doing a soft credit check and working with a range of lenders, L&C can help you find a lender that`s right for you.