Barclays Agreement in Principle: The Key to Unlocking Help to Buy
Are you a first-time homebuyer struggling to get on the property ladder? Well, the good news is that there are many government schemes and policies to help people like you. One of these schemes is Help to Buy, which enables first-time buyers to purchase a new home with a small deposit.
Barclays is one of the leading lenders participating in the Help to Buy scheme. But before you start browsing through properties on the market, you need to know about the Barclays Agreement in Principle (AIP).
What is a Barclays Agreement in Principle?
An Agreement in Principle is also known as a Decision in Principle or Mortgage in Principle. It`s an initial assessment of how much money a lender is willing to lend you based on your income, expenses, and credit score. The AIP is not a guarantee that a lender will approve your mortgage application, but it does give you an idea of how much you can borrow.
Why is an AIP important for Help to Buy?
Getting an AIP from Barclays is crucial when applying for a Help to Buy mortgage. The Help to Buy scheme requires a minimum deposit of 5% of the property value, and the government offers a loan of up to 20% of the property price. The remaining 75% is covered by a mortgage from a participating lender, such as Barclays.
To apply for a Help to Buy mortgage, you need to have an AIP in place. This allows you to know how much you can borrow and make an offer on the property within the government scheme`s price range. Without an AIP, you risk being turned down for a mortgage, or you may not be able to secure the property you want.
How do I get a Barclays Agreement in Principle?
You can apply for a Barclays Agreement in Principle online or by calling your local Barclays branch. The lender will ask you for information about your income, expenses, and credit score as part of the initial assessment.
Make sure you have your financial information handy, such as your salary, monthly expenses, and any outstanding debts. Barclays will use this information to determine how much it`s willing to lend you based on its lending criteria.
Once you have your AIP, you can start browsing for properties within the Help to Buy scheme`s price range. If you find a property you want to buy, you can then apply for a formal mortgage offer from Barclays.
In conclusion, the Barclays Agreement in Principle is an essential step towards securing a Help to Buy mortgage. It gives you an idea of how much money you can borrow, which enables you to make an informed decision when browsing for properties within the scheme`s price range. So if you`re a first-time buyer looking to get on the property ladder, consider applying for a Barclays AIP today and take the first step towards owning your dream home.