We're aware that some users are experiencing technical issues which the team are working to resolve. See the Community Noticeboard for more info. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Agreement In Principle - Northern Rock

Options
Hello - I am after a bit of advice (more re-assurance) about our Mortgage which has been agreed in principle.

Its with Northern Rock - IFA rang us to say they have an AIP (I think it was called that, may have been decision in principle which may be the same thing anyway).

Northern Rock are wanting one months payslips which we have already provided to the IFA. IFA says that as long as the value on our new house (new build) comes back OK and we provide Northern Rock with payslips then all is fine.

So - I am trying not to get excited, but does this mean that our Mortgage has been approved (subject to valuation and payslips)? Or is an AIP\DIP pretty worthless or a "rough guide"? Does anyone know if credit check(s) have been done at this stage?

Dont want any nasty suprises later on.

Thanks! :)

Comments

  • Don't count your chickens, yet.
    Act in haste, repent at leisure.

    dunstonh wrote:
    Its a serious financial transaction and one of the biggest things you will ever buy. So, stop treating it like buying an ipod.
  • Don't count your chickens, yet.

    Cluck Cluck :)

    Thanks, first time we have moved home and it seems like lots of ups and downs with lots of "what ifs" going on.

    For us first it was getting a part ex value (done), now we are waiting for our survey on our house which fingers crossed will come back ok, then its getting the mortgage etc etc.

    Trying desperately hard not to get too excited and at the same time I think my wife thinks I am being miserable, I prefer sensible.

    Do you know if credit check has been done yet? I fee like I am obsessing over this but I am a stickler for details.
  • Don't feel bad for obsessing. You have to in order to get things done. Nothing will get handed to you on a plate.

    AIP is the same thing as a DIP - stands for Agreement in Principle. Either way nothing is set in stone yet and your case will go to an underwriter (if Northern Rock work in the same way as the lender I'm applying to). I don't think they would have done a full credit check yet. An AIP is usually decided based on what you have said about how much you earn, how much the house is worth and how much your deposit is (or part-ex). If the mortgage you are seeking meets their loan-to-value and income-to-loan ratio they will give you the AIP.

    If you decide to go ahead with the mortgage application they will make sure you earn what you say you earn by looking over your wage slips. In addition, they may seek employment references to confirm this. They will of course also run a full credit check and study that. Hopefully they will satisfy themselves that they are happy to lend you and your wife the sum of money you require before they go ahead with the valuation.

    It is a very slow, frustrating process which will all be worth it in the end but you are right to keep a level head because there are too many things that could go wrong for you to "count your chickens" as CloudCuckooLand said. We got out AIP on 21st Jan and we have just reached valuation stage. I'm still very nervous because if they value the house below what we've offered the lender will only lend us what the valuer says it's worth and we will not be able to make up the shortfall (and the seller won't let it go for less) so the house is still far from ours.

    At least in your position you don't need to worry about sellers pulling out which is one weight off your mind.

    For now, keep soldiering on and always be at the end of the phone and organised!
    Laura :p
    “If you don't know where you are going, any road will get you there.”
    “If you only do what you know you can do- you never do very much.”
  • Don't feel bad for obsessing. You have to in order to get things done. Nothing will get handed to you on a plate.

    AIP is the same thing as a DIP - stands for Agreement in Principle. Either way nothing is set in stone yet and your case will go to an underwriter (if Northern Rock work in the same way as the lender I'm applying to). I don't think they would have done a full credit check yet. An AIP is usually decided based on what you have said about how much you earn, how much the house is worth and how much your deposit is (or part-ex). If the mortgage you are seeking meets their loan-to-value and income-to-loan ratio they will give you the AIP.

    If you decide to go ahead with the mortgage application they will make sure you earn what you say you earn by looking over your wage slips. In addition, they may seek employment references to confirm this. They will of course also run a full credit check and study that. Hopefully they will satisfy themselves that they are happy to lend you and your wife the sum of money you require before they go ahead with the valuation.

    It is a very slow, frustrating process which will all be worth it in the end but you are right to keep a level head because there are too many things that could go wrong for you to "count your chickens" as CloudCuckooLand said. We got out AIP on 21st Jan and we have just reached valuation stage. I'm still very nervous because if they value the house below what we've offered the lender will only lend us what the valuer says it's worth and we will not be able to make up the shortfall (and the seller won't let it go for less) so the house is still far from ours.

    At least in your position you don't need to worry about sellers pulling out which is one weight off your mind.

    For now, keep soldiering on and always be at the end of the phone and organised!

    Thanks for the reply, usefull info. Lots of finger crossing going on.... :)
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 350.9K Banking & Borrowing
  • 253.1K Reduce Debt & Boost Income
  • 453.5K Spending & Discounts
  • 243.9K Work, Benefits & Business
  • 598.8K Mortgages, Homes & Bills
  • 176.9K Life & Family
  • 257.2K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.