An AIP indicates how much you could borrow based on the information you have provided, it performs various criteria and credit reference agency checks, and gives a conditional decision to lend based on its findings.

Lenders don’t just look at your income but also at your outgoings, because only by focusing on the two things together can they get a reasonable idea of what you can afford to repay on a mortgage each month. By assessing a borrower’s affordability lenders can build up a more realistic picture of your finances to get a better idea of how much they should lend. Not only does this make it more likely they will get back any money they lend out, it is also obligatory, as part of tough new regulations imposed on lenders to protect consumers from over borrowing. As for a deposit, the more you can put down upfront the better interest rates you are likely to be able to access. So try to put down as much as possible upfront.

Aside from your deposit you will need to make sure you have enough money put aside for associated costs such as Stamp Duty, mortgage fees, solicitor’s fees, insurance and removal fees.

You can apply over the phone on 0800 707 6206 or online. We are available 8.30am-7.30pm Mon-Fri and 9.00am-1.30pm Sat. Closed on Sundays.