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  • FIRST POST
    • Fonque
    • By Fonque 23rd Feb 17, 4:46 PM
    • 37Posts
    • 102Thanks
    Fonque
    FTB AIP Questions
    • #1
    • 23rd Feb 17, 4:46 PM
    FTB AIP Questions 23rd Feb 17 at 4:46 PM
    Does an AIP lock you into an amount that you're looking to borrow from a mortgage lender?

    Or is it just to declare your suitability for borrowing money from a mortgage lender?

    I have evidence of a deposit but with a flat I have seen I'd like to increase it marginally and am waiting on some funds from an S&S Isa to transfer.

    Should I get an AIP now even though the funds are yet to be transferred into my deposit, because I'd like to place an offer on the property as soon as possible.

    Many thanks in advance for any replies, as this is all very new to me.
Page 1
    • Taggo
    • By Taggo 23rd Feb 17, 4:57 PM
    • 63 Posts
    • 57 Thanks
    Taggo
    • #2
    • 23rd Feb 17, 4:57 PM
    • #2
    • 23rd Feb 17, 4:57 PM
    An AIP just tell you that they are willing o lend to you and gives you the maximum amount you can borrow. Whether you borrow as much is up to you.
    • missmoose
    • By missmoose 23rd Feb 17, 5:11 PM
    • 110 Posts
    • 312 Thanks
    missmoose
    • #3
    • 23rd Feb 17, 5:11 PM
    • #3
    • 23rd Feb 17, 5:11 PM
    They are not obliged to lend you that amount though.
    Do a couple online calculators to work it out roughly though, they all will give you different amounts.
    Our AIP said we could borrow 130k (I think, I haven't got it to hand) but we didn't borrow that much, we weren't even forced to get our actual mortgage with the bank that gave us our AIP.
    They don't really mean much just that there isn't anything painfully obvious that would mean you wouldn't get a mortgage, when they dig deeper they may still decline you, but estate agents like to know you have one to take you seriously but if you show them it they know your upper limit (to some extent) and will push you to up your offer, but if you don't show them they could tell the vendor they don't think you're a serious offer. Catch 22 really. That's what we found anyway. x
    • tomatta
    • By tomatta 23rd Feb 17, 5:49 PM
    • 21 Posts
    • 33 Thanks
    tomatta
    • #4
    • 23rd Feb 17, 5:49 PM
    • #4
    • 23rd Feb 17, 5:49 PM
    I got an AIP for the asking price, eventually I had to beat a few bidders and go higher. There wasn't any problem getting the higher amount from the same lender, so no an AIP doesn't lock you in place.
    • ACG
    • By ACG 23rd Feb 17, 5:54 PM
    • 15,786 Posts
    • 8,082 Thanks
    ACG
    • #5
    • 23rd Feb 17, 5:54 PM
    • #5
    • 23rd Feb 17, 5:54 PM
    An AIP is not worth the paper it is printed on with most lenders (certainly none of the high street lenders). It is just a piece of paper that says in principle based on what you told us we will lend to you.

    Personally I try to avoid getting AIPs for my clients until they have found a property, had an offer accepted and are ready to make an application.

    An AIP usually involves a credit check - too many and it can damage your credit score.
    They are only valid for a month usually.
    The best lender today may not be tomorrow.
    If it displays how much you can lend and you give it to the an estate agent, they may use that against you when negotiating a purchase price.

    But no, an AIP does not lock you in to a lender.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • Fonque
    • By Fonque 14th Mar 17, 7:27 PM
    • 37 Posts
    • 102 Thanks
    Fonque
    • #6
    • 14th Mar 17, 7:27 PM
    • #6
    • 14th Mar 17, 7:27 PM
    Muchos Gracias! I appreciate your time in answering my questions.
    • ACG
    • By ACG 14th Mar 17, 8:26 PM
    • 15,786 Posts
    • 8,082 Thanks
    ACG
    • #7
    • 14th Mar 17, 8:26 PM
    • #7
    • 14th Mar 17, 8:26 PM
    Most are full footprints, a couple do soft footprints. The ones that do soft footprints are worth even less than the ones who do full footprints.

    As I said, if you go to the estate agents showing how much you can lend it is potentially going to affect negotiations.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
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