How Mortgage Capacity Reports Are Different from Agreements in Principle

An Agreement in Principle (AIP) can be completed online by the client; however, the accuracy of the information entered relies entirely on the client’s input. For example, a client might incorrectly record child maintenance payments as primary income rather than additional income, which can significantly affect the loan amount offered. Additionally, an AIP is only a preliminary approval, with full underwriting occurring later during the formal mortgage application process.

In contrast, a Mortgage Capacity Report is a formal document prepared and underwritten by a qualified professional. It considers all relevant factors, including detailed income assessments, credit history, and property criteria, providing a far more comprehensive and reliable evaluation of borrowing capacity.

For this reason, an AIP certificate is not admissible in court, while a Mortgage Capacity Report is designed to meet the evidentiary standards required for legal and financial proceedings