When you`re looking to buy a property, one of the first things you`ll need is a mortgage agreement in principle (AIP). This is a document that shows how much a lender may be willing to lend you, based on your income, expenses, and credit score. But one question that often comes up is “what`s the cost of a mortgage agreement in principle?”

The good news is that an AIP is generally free. Most lenders won`t charge you for the service, and it`s often done online or over the phone. However, there are a couple of things to keep in mind.

Firstly, if you`re getting an AIP, it`s because you`re starting the process of applying for a mortgage. And applying for a mortgage can involve a range of costs, including mortgage arrangement fees, valuation fees, and legal fees. These costs can add up, so it`s important to factor them into your budget when you`re considering how much you can afford to borrow.

Secondly, it`s worth noting that having multiple AIPs can impact your credit score. When you apply for an AIP, the lender will perform a “soft” credit check, which won`t leave a mark on your credit file. But if you apply for multiple AIPs within a short space of time, it can start to look like you`re desperate for credit, and this can lower your credit score. So it`s best to do your research and only apply for an AIP from a lender you`re seriously considering.

Overall, the cost of a mortgage agreement in principle is typically zero. But it`s important to remember that getting an AIP is just the first step in the mortgage application process, and there may be other costs you need to consider as well. By doing your research and being prepared, you can make the process of buying a property as smooth as possible.