Credit Score Basics > How does a Barclays mortgage in principle work?

How does a Barclays mortgage in principle work?

Wollit Team2 minute read · Updated 30th June 2024

A Barclays mortgage in principle, also known as an Agreement in Principle (AiP), is the initial step in the mortgage application process. It allows you to find out quickly if Barclays would be willing to lend you a certain amount for a mortgage without affecting your credit score.

Here is how it works.

How can I get a mortgage in principle from Barclays?

Getting a mortgage in principle from Barclays is really straightforward.

First, you can start your application for a mortgage in principle online. This usually takes about ten minutes, and it can help you understand how much you can afford to borrow based on your income, regular spending, and debts. Barclays will essentially look at whether you can afford the mortgage payments both now and in the future.

During the application, Barclays will access your credit file. However, you shouldn’t be concerned – this is only a soft credit check, and it does not affect your credit score.

If your application is approved, you will be offered the option to book an appointment online with a Barclays mortgage adviser.

Your mortgage in principle will be valid for 90 days if there are no changes to your financial situation or credit score. If anything changes, you need to let Barclays know.

Also, you should keep in mind that while a mortgage in principle does not guarantee a mortgage offer, it provides an indication of Barclays' willingness to lend you the amount you’re asking for.

If you decide to proceed with a full mortgage application, Barclays will conduct a more detailed assessment of your income, credit history, and financial situation. This will also always include a hard credit check.

Can I get a mortgage in principle from Barclays if I have a poor credit score?

Barclays also makes it clear that people with bad credit could get an agreement in principle, too.

According to their website, you might still be able to get an AiP even if you've had some money problems in the past. Depending on your circumstances, you might need to speak to a Barclays representative before they can offer you an AiP.

Also, simply getting a mortgage in principle doesn’t mean that you’ll get the final mortgage offer.

That’s because for the final mortgage offer, Barclays will run a hard credit check on your credit file, which might mean that it can discover details in your credit history which can make it reconsider.

Here are some examples:

Having declared bankruptcy in the past six years;
Having an unpaid CCJ within the past six years;
Having been turned down for a mortgage or having had a home repossessed in the past six years.

However, you can still go ahead and apply for an agreement in principle from Barclays, even if you’re not sure that you qualify. This can give you an idea if you are eligible for the mortgage without affecting your credit score.

And if you are declined for a mortgage in principle or it’s not on the terms you would like, then it’s a clear sign that you need to invest more in your credit score.

The good news is that many apps can help you build and improve credit.

One of them is Wollit. Wollit is an app available on both Android and iOS and works by reporting a fixed-fee monthly subscription as a loan repayment to all credit reference agencies. This helps you build a history of timely debt repayments, which is the main factor that matters for your credit score.

On top of this, Wollit can also report your monthly rent payment to Experian. This can add another line in your credit report that shows lenders you pay your bills on time, helping you make the most of your rent while you prepare to become a homeowner.