How hard is it to get an Agreement in Principle?

patrick_bs15

Hi
A couple who I work with, who both have stable incomes (teachers with 2 years experience, on permanent contracts) are having trouble getting an agreement in principle from their bank (NatWest? I think)

They are unable to proceed with an offer (as FTBs) on the property they really like. According to the Estate Agent they're dealing with, without the AiP they can't make an offer, but their bank is saying that unless they get an offer accepted they can't get the AiP!

I'm confused: they say that they have enough money for the deposit and are being messed around by the bank.

Anyone shed any light on this? What courses of action are open to them?
Ta:)

beecher2

Tell them to see a mortgage adviser to take them through the process - another bank may be a better option for them anyway.

Wh05apk

Estate agent leagally has to submit an offer, although they should try to validate the ability to proceed, but in this case they should submit, but just tell the vendor they have not had their mortgage agreed.

The bank are just being either lazy or incompetent, of course they can get an aip without having their offer accepted, might just be they can;t be bothered to waste their time, incase it does not go ahead?

As Beecher says, tell them to see a broker to do it properly.

SilverSix

I had an AIP given to me without any questions asked. I told them my situation and should I wish to make any offers on properties I want to be in the position to prove it then and there.

If their banks ******* them around go somewhere else for a mortgage.

B19jon_2

I have had this problem with Natwest. Even though broker advised most competitive rate, Natwest claimed they could send a 'cover letter' in the post to give to estate agents but may take a week or so to arrive.

In the end, I got an AIP through HSBC and used that - was an easy instant process based on affordability test and gave me a certificate to print off which the agent accepted.

Good luck!

Jon

kingstreet

The whole point of the AIP process is to provide buyers and seller with confidence that an offer can be reasonably made/accepted.

If you can't get an AIP from NatWest before you make an offer, how on earth can you confidently know how much you can afford to borrow and your prospective purchase price range?

Kick them to the kerb and find someone else.

Lenders! :doh: