With the mortgage market becoming increasingly competitive, Halifax hopes its new market leading, innovative tool for Agreements in Principle (AIP) will help its customers and continue its positive reputation within the market.

Obtaining a mortgage in the best of times can be stressful, even for those with past experience, and Halifax’s new tool has been designed to help customers not only calculate their affordability but provide a decision which confirms whether the customer would be able to obtain a mortgage with Halifax. When providing an AIP, a lender will assess many factors, with a customer’s credit file being used to show their past ability to make payments on time and an affordability assessment, which shows whether the customer would be able to afford making the future mortgage payments.

As well as the AIP, the tool walks customers through the process of completing on their mortgage and provides advice and guidance on actual costs going forward. Customers are able to change factors such as deposit size and term of mortgage so they can better understand what their monthly costs will be. What’s more, the tool provides an indication on what other costs will be incurred, such as stamp duty and legal fees.

When the decision has been processed, customers can expect it to be emailed to them for their own records, and to give to their estate agent.

Craig McKinlay of Halifax reports that “The launch of this new instant Agreement in Principle (AIP) tool significantly reduces the amount of time a customer will need to spend to obtain a lending decision from Halifax. Being able to complete the application while on the move on both mobiles and tablets helps our customers fit the process around a hectic schedule. We are continually exploring ways in which we can serve our customers in the way that best appeals to their needs and this new offering further cements our reputation as the bank who gives our customers extra”.