Lloyds Bank customers could get ‘more than five times their income’ | Personal Finance | Finance
Lloyds Bank has shared a ‘ten-minute’ check available for first-time buyers. The bank explained that an Agreement in Principle (AIP) is the first step toward getting a mortgage, as it shows how much you could borrow before you apply.
In an advert shared on Instagram, Lloyds said: “You could unlock your first home by borrowing up to 5.5x your income.” The post explained: “See how much you could borrow with a mortgage Agreement in Principle. It takes about ten minutes and won’t affect your credit score.”
In a note displayed at the bottom of the post, Lloyds added: “Conditions apply. You could lose your home if you don’t keep up your mortgage repayments. Lending is subject to status.”
More information on the banks’ website for first-time buyers. The bank explains you will need to apply for an Agreement in Principle if you are moving home or remortgaging.
Lloyds said: “An Agreement in Principle (AIP) confirms how much you could borrow from a lender before you apply for a mortgage. You might also know them as a mortgage in principle, decision in principle or mortgage offer in principle.
“If you’re in the market for a new home, an Agreement in Principle can give you a better idea of what properties you can afford. In many cases, estate agents will ask to see an AIP before they show you a property. This shows them you’re serious about buying.
“Once you’ve got your AIP, you can make a full mortgage application when you’re ready. You can apply online, by video appointment or by phone. An Agreement in Principle is not a guarantee of how much we will lend, so terms may change when you do a full mortgage application.”
The bank told customers that applying for an AIP is ‘quick and easy’. To get an AIP with Lloyds, the bank said you will need to provide details of your income and outgoings, plus your addresses for the past three years, reports the Mirror.
Lloyds said: “We’ll do a soft credit check as part of the process. This won’t affect your credit rating or your ability to borrow in the future.” The application can be made online.
There’s not long to wait for a response. The bank said you will get an instant decision if you apply between 6am and 10pm Monday to Saturday, or 6am and 9pm Sunday. Outside of these times, you will get a response the next day.
Lloyds adds: “Not quite ready to apply for an Agreement in Principle? Our mortgage calculators could give you an idea of how much you could borrow and how much you still need to save. Our calculators don’t carry out any credit checks. They’ll simply give you an estimate to get you started.”
