Get a mortgage offer in 15 minutes with new Halifax tool
Mobile tool means you could get a mortgage in less than 15 minutes.
Halifax has launched a mobile Agreement in Principle tool which gives users an almost immediate decision on a mortgage.
The tool, which is also available on tablet and desktop, will give you a lending decision in under 15 minutes.
What is an Agreement in Principle?
Also known as an Approval in Principle or Decision in Principle, an Agreement in Principle is an agreement to lend based on an initial assessment of your circumstances including income, outgoings and credit score along with other factors, depending on your provider.
It essentially means you can demonstrate to a vendor that a mortgage lender is willing to give you a mortgage, while also helping you work out exactly what you can afford.
How the Halifax tool works
All that you need to enter is information about your circumstances, income and commitments to get a decision. It’ll be based solely on your information, so there’s no need to enter the house value and deposit.
Once the decision has been made, you'll be able to use a calculator to edit the term and deposit amount to illustrate the impact on monthly payments, including costs like Stamp Duty and legal fees. This allows potential buyers, particularly first-timer buyers, to see all of the costs associated with buying a house in a single place, which should make budgeting a bit easier.
The decision will be emailed to you, along with steps on what to do next. Alternatively, you can opt to send the lending decision to an estate agent or family member.
Industry experts have predicted other lenders will soon follow suit in offering similar tools.
Saving time
The big plus point of a tool like this is the speed – you can decisions on the move, such as on the way to a house viewing, making it easier to fit in with your own schedule. It also allows borrowers to act quickly if they see a property that suits their needs.
It's worth bearing in mind that getting an Agreement in Principle from a lender doesn't mean that you have to proceed with that lender when the time comes to make a formal mortgage application. In fact, you shouldn't be too tempted to go with a lender just because they can provide a quick Agreement in Principle, as that could cost you in the long run.
"[This tool] might encourage you to go with Halifax even when the mortgage isn’t right for you”, warned Andrew Montlake of mortgage brokers Coreco, emphasising that there is no advice given as to whether or not Halifax is best for your needs.
So shop around, and remember that the mortgage that suits you today when you begin your property search may no longer be the best bet for you when the time comes to actually buy the property.
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