Barclays Premier Agreement in Principle: Everything You Need to Know
In the world of mortgage lending, an “agreement in principle” refers to a conditional offer of a mortgage loan. It is an indication from the lender that they are willing to lend you the amount you have requested, subject to certain conditions being met. As a result, it is an incredibly important step in the mortgage application process, and one that all borrowers should be aware of.
In this article, we take a closer look at the Barclays Premier Agreement in Principle, what it is, how it works, and what you need to do to get one.
What is a Barclays Premier Agreement in Principle?
A Barclays Premier Agreement in Principle is a pre-approval for a mortgage from Barclays Premier, the premium banking and wealth management service offered by Barclays. It is a commitment from Barclays to lend you the amount you have requested, subject to certain conditions being met. This makes it easier for you to find a property you can afford and move forward with your home-buying plans.
How does it work?
To get a Barclays Premier Agreement in Principle, you will need to meet certain eligibility criteria. This includes being a Barclays Premier customer, which means you will need to hold at least £100,000 in deposits or investments with Barclays or have an annual income of at least £75,000.
Once you have met these requirements and provided Barclays with all the necessary information regarding your employment, income, and outgoings, they will conduct a credit check to determine your creditworthiness. If they believe you are eligible for a mortgage, they will issue you with a Barclays Premier Agreement in Principle.
This Agreement in Principle will specify how much Barclays is willing to lend you, subject to the property you wish to buy passing their valuation, and subject to you meeting all the other conditions set out in the agreement.
What are the benefits of a Barclays Premier Agreement in Principle?
One of the main benefits of a Barclays Premier Agreement in Principle is that it allows you to demonstrate to estate agents and sellers that you are a serious buyer. By having a pre-approval in place, you show that you have already taken steps towards securing a mortgage, which can help you stand out from other potential buyers.
Other benefits of a Barclays Premier Agreement in Principle include:
– You can narrow down your property search to properties that fall within your budget.
– You can move quickly if you find a property you want to buy, as you have already been pre-approved for a mortgage.
– You have peace of mind knowing that you have been approved for a mortgage and can focus on finding the right property for you.
In conclusion, a Barclays Premier Agreement in Principle is an important step in the mortgage application process for those looking to buy a property. It allows you to demonstrate to sellers and estate agents that you are a serious buyer and gives you peace of mind knowing that you have been approved for a mortgage. If you are a Barclays Premier customer and meet the eligibility criteria, it is worth considering applying for an Agreement in Principle to make the home-buying process as smooth as possible.