Lloyds Bank has highlighted a 'ten-minute' check for first-time buyers, known as an Agreement in Principle (AIP), which shows how much they could borrow before making a full mortgage application. The bank stated that the process takes about ten minutes and does not affect the applicant's credit score.
In an Instagram advert, Lloyds told users: "You could unlock your first home by borrowing up to 5.5x your income." The post added: "See how much you could borrow with a mortgage Agreement in Principle. It takes about ten minutes and won't affect your credit score." A note at the bottom warned: "Conditions apply. You could lose your home if you don't keep up your mortgage repayments. Lending is subject to status."
Lloyds explained that an AIP gives buyers a better idea of what properties they can afford, and estate agents often require one before showing properties. The bank noted that an AIP is not a guarantee of lending, and terms may change upon full application. Applicants need to provide details of income, outgoings, and addresses for the past three years.
The bank conducts a soft credit check, which does not affect the credit rating. Instant decisions are available between 6am and 10pm Monday to Saturday, or 6am and 9pm Sunday; outside those hours, responses come the next day. More information is available on the Lloyds website.
