Agreement in principle from RBS

brightongirl22

RBS have agree to a mortgage of £119k, so a maximum purchase price of about £130k (i forget the precise figure ) and we are now looking for a house, but I'm really concerned they may turn around & say no - is this common after receiving an agreement in principle? We passed affordability & credit check, but my o/h only earns £19k (though we get benefits of £8k per year child tax credits etc which they take into account) so to me to lend us £119k seems a bit too high really. We can afford to pay that level of mortgage because we live very carefully but I am really concerned they may turn round and say no once we've found a house :eek: so i'm looking for reassurance (or not!)
thanks

sgh1976

brightongirl22 wrote: »

RBS have agree to a mortgage of £119k, so a maximum purchase price of about £130k (i forget the precise figure ) and we are now looking for a house, but I'm really concerned they may turn around & say no - is this common after receiving an agreement in principle? We passed affordability & credit check, but my o/h only earns £19k (though we get benefits of £8k per year child tax credits etc which they take into account) so to me to lend us £119k seems a bit too high really. We can afford to pay that level of mortgage because we live very carefully but I am really concerned they may turn round and say no once we've found a house :eek: so i'm looking for reassurance (or not!)
thanks

RBS will do another, more indepth, credit check when you submit the application. So if you credit history is clean then you should be ok.

From my experience, the AiP is based on the last 3 years, the full is done off the last 6 years (or 12 years in the case of some people off this site)

brightongirl22

thanks for your reply. Our credit history is clean, though we do have multiple addresses (5 in 3 years!) otherwise no problems.. it's more the affordability part of it i'm concerned about - have read on here of people waiting 5-6 weeks after finding house then getting turned down but I don't know if that is common or likely?

happybroker

RBS will assess affordability in more detail once yo umake a full application, you may be asked to forward bank statements etc.

Unfortunately, and this is what is so unfair about this process, you can't get to this stage until you have something you want to buy, 4x income is quite a bit at high loan to value but if nothing scary shows on your bank statements then my gut feeling is you could be ok. Again, you won't know for sure until you put in the full application I'm afraid.

Conrad

Quite often seen threads just like this, and from those you will get broadly 2 types of responses;

1) Even some brokers will tell you not to worry, it's usually plain sailing after aip, which is very disingenious of them, afterall if that was the case, why bother having a 'Human hands on' underwriting process after AIP!

2) The truth - maybe you'll pass, maybe not. Credit history is but one item, but there are a thousand different reasons a case may fail - I've been at this since 1991, and still I get new reasons for declines every month

sgh1976

brightongirl22 wrote: »

it's more the affordability part of it i'm concerned about - have read on here of people waiting 5-6 weeks after finding house then getting turned down but I don't know if that is common or likely?

If RBS have given you a AiP then they think you can afford it.

It took them 3 weeks to say no to me on the full application

new_home_owner_3

i got my application and proofs to them 2 days ago, today ive got it agreed subject to a survey and a anti-impersonation letter, im well chuffed with the service.

Mind you we had to keep chasing them, but up to yet we have been well pleased.