Why Your Current Agreement in Principle Might Cost You Thousands!
Securing a mortgage agreement in principle (AIP) is a significant step toward buying a home. It shows that a lender is prepared to offer you a certain amount, giving you the confidence to proceed with your property search. But is your current deal truly the best one for your needs?
Even with an AIP in hand, there are compelling reasons to review your options, even if you're already working with a mortgage broker.
A Second Opinion Can Save You Money!
Why You Shouldn't Go Straight To Your Bank
Many people feel loyal to their bank, and if you've used them for many years, it's easy to understand why. But big banking institutions are focused on profits, and with some of the charges they apply for using facilities like overdrafts these days, they definitely aren't loyal to their customers in return. Using your bank can cost you thousands. Here's why:
- Narrow Product Range: Banks only offer their own products, which might not be the best fit for your current needs or give you the best interest rates available on the market.
- Strict Lending Criteria: Banks can have rigid rules, and if your profile doesn’t align perfectly (e.g., if you’re self-employed, or your credit score has changed), it may be harder to secure the right deal.
- They won't Monitoring the Market for Cheaper Deals: Once you’ve made a mortgage application, your bank won’t notify you if they launch a cheaper mortgage deal before you complete on your purchase and tie yourself in. You’ll need to keep an eye on the market, and if a better deal becomes available, and you want to take advantage of the lower payments, you’ll need to re-start your mortgage application from square one.
Mortgage Brokers with limited Lender panels
Many mortgage brokers have a limited number of lenders on their panel and subsequently have access to a limited selection of mortgage deals. It's, therefore, important to check your deal with a mortgage broker who has access to the full range of lenders on their panel, otherwise, you may be paying more than you need to!
The Advantages of a Mortgage Broker with a full range of lenders on their panel
The only way to ensure your getting the best mortgage deal is to use a broker that has access to the full range of mortgage and lenders in the market. Here's why:
- Wide Access to Lenders: A broker can tap into multiple lenders, ensuring you’re not missing out on the best mortgage deals that might be unavailable on the high street.
- Personalised Strategies: Your needs are unique—perhaps you’re moving up the property ladder or consolidating equity. A broker’s tailored approach ensures you get a mortgage that reflects your current goals.
- Time-Efficient: Rather than spend hours researching, let a professional handle the comparisons. You’ll save time and avoid guesswork.
- Exclusive Offers: Brokers often have access to rates and deals that aren’t visible on consumer-facing platforms, providing added value in a competitive market.
- Monitors the Market for Cheaper Deals: After you’ve made a mortgage application, a good mortgage broker will continue to monitor the market and all of the lenders for you and then let you know if a cheaper mortgage deal becomes available before you complete on your purchase and tie yourself in. The mortgage broker will then do all of the leg work and complete the new application on your behalf, saving you time. This ensures that you get the best possible deal that the market has to offer, which can save you thousands of pounds over the course of the mortgage!
Meet James, our Whole of Market Mortgage Expert at Nicholsons
At Nicholsons, we're proud to have James, our dedicated in-house mortgage advisor. With extensive experience in guiding both first-time and seasoned buyers, James stays up to date on lending criteria, industry changes, and exclusive deals.
In a free 10-minute, no obligation conversation James can:
Evaluate Your Current AIP: Identify if it still serves your best interests—or if there’s a better product available.
Offer Tailored Advice: Review your long-term goals to recommend mortgages that keep you financially comfortable, both now and in the future.
Simplify the Process: From updating your agreement to closing the deal, James can handle the complexities so you don’t have to.
Ready to Explore Your Options? Click on the banner below! 👇
Even if you feel confident about your existing AIP, a quick conversation with our mortgage broker could reveal lower rates, better terms, or incentives that you weren’t aware of. A few minutes of your time now could save you thousands over the lifetime of your mortgage.
