Tesco Bank is a leading financial institution that offers a broad range of financial products, including personal loans, credit cards, insurance, and mortgages. The bank has recently introduced a new feature to its mortgage application process known as the `Agreement in Principle` or AIP.

The AIP is a preliminary decision made by the lender to approve or decline the applicant`s mortgage based on the information provided during the initial application process. The AIP is not a formal offer, but it gives the borrower an idea of how much they can borrow and whether they are likely to be approved for a mortgage.

As part of its commitment to providing customers with a seamless and stress-free mortgage application process, Tesco Bank has introduced the AIP, which can be completed online in just a few minutes. The AIP is designed to help borrowers understand how much they can potentially borrow and what the monthly payments might look like. By providing this information upfront, Tesco Bank aims to give borrowers more confidence in their ability to secure a mortgage and make an informed decision.

One of the key benefits of the AIP is that it does not leave a credit footprint, meaning it will not affect the borrower`s credit score. This is because the AIP is a soft credit search, which means it only checks the borrower`s credit history and does not leave any record of the search. This is different from a full mortgage application, which is a hard credit search and can affect the borrower`s credit score.

Furthermore, the AIP is valid for 90 days, giving the borrower ample time to find a suitable property and progress their mortgage application. During this time, the borrower can work with a mortgage advisor to get a more accurate idea of their borrowing potential and explore the various mortgage products available from Tesco Bank.

In conclusion, the introduction of the AIP by Tesco Bank is a positive step for borrowers, providing them with more transparency and clarity in the mortgage application process. By giving borrowers an idea of their borrowing potential upfront, Tesco Bank aims to make the mortgage application process easier and less stressful. The AIP is a soft credit search, so it will not adversely affect the borrower`s credit score, and it is valid for 90 days, giving borrowers more time to find a suitable property and progress their mortgage application.