FTB - successful AIP but no document

makoto

I am a FTB and also a contractor. I went through a broker specialising in contractors and they have been very helpful. I decided to obtain an AIP with the propossed lender to see how much I can borrow and so I went through with the credit check.

The response from the lender was positive but the advisor has informed me that they do not provide any sort of AIP document. This sounded very strange to me since the whole point of this is to get a document that can tell how much the specific lender can offer you.

Although I understand it does not guarantee a mortgage, I am not convinced if I should proceed any further with my property search...

Is this something common for contractors who go through contractor's brokers?

Has anyone else had this experience as a contractor?

many thanks

dunstonh

The response from the lender was positive but the advisor has informed me that they do not provide any sort of AIP document. This sounded very strange to me since the whole point of this is to get a document that can tell how much the specific lender can offer you.

I have never seen a written AIP apart from some gimmicky ones years ago from a couple of lenders who did it for marketing purposes.

AIP has no legal standing and you can be turned down the very next day. They are little more than "if what you have told us is correct and no new information comes to light and our lending criteria doenst change then we see no reason why we wont lend to you.

I am sure if you asked the broker nicely they could knock something up on MS Word to make you happy.

Conrad

Just about all lenders do allow the AIP document to be printed off.

There are 2 likely reasons as to why he wont give you a copy;

1) He has not really done it because often brokers find themselves doing this work only for the applicant not to return so it can be a thankless time vampire. This is more pertinent if the applicant has not found a property yet.

2) He has done it but does not want to give you a copy because he thinks you will then present it to Estate Agents who will then armed with this info try and offer a cheaper lender (rates change daily so the likelyhood of the lender he has AIP'd with remaining the most competetive is slim).

Ask to see your case on screen with your name showing as approved.

dunstonh

Just about all lenders do allow the AIP document to be printed off.

Are they still as gimmicky as they used to be? I remember some used to look like certificates and be all flash as if you had achieved something.

makoto

Conrad wrote: »

Just about all lenders do allow the AIP document to be printed off.

There are 2 likely reasons as to why he wont give you a copy;

1) He has not really done it because often brokers find themselves doing this work only for the applicant not to return so it can be a thankless time vampire. This is more pertinent if the applicant has not found a property yet.

2) He has done it but does not want to give you a copy because he thinks you will then present it to Estate Agents who will then armed with this info try and offer a cheaper lender (rates change daily so the likelyhood of the lender he has AIP'd with remaining the most competetive is slim).

Ask to see your case on screen with your name showing as approved.

I am a little confused as to if there is an AIP in physical or digital form or it's all verbal after all. Should I ask for an email or a document with the mortgage details and the lender's credentials included?

In terms of (1) I cannot see the point of getting an AIP once I have found a property, since the lender will have to carry out a credit check anyway? I believed the whole point of the AIP is to confirm, in a non-binding way, that I can actually borrow the money I need before spending 6 months looking for a property.

For (2) I understand your point but I think it is very unlikely. As a contractor + FTB there aren't many options for me out there, this is why I went to a specialised advisor for contractors and they know that. I had no plans of showing my AIP to the agents anyway, as this would compromise the negotiations.

paint

I'm also a contractor. I was recently advised by a specialist broker for contractors to go with either Woolwich or Clydesdale (I was looking for an Offset product). I applied for an AIP with Woolwich but was informed they couldn't give me an AIP and that I'd have to go for a full app with them (I didn't - I went with Clydesdale in the end).

To be honest, I don't see why you need the AIP document. The decision itself should give you a reasonable amount of confidence now that you can look within a certain price range and, if an Estate Agent badgers you for a document, just refer them to your Broker.

Ultimately, it's just an initial assessment of your situation and doesn't necessarily reflect whether or not the Lender will actually lend to you. You will only know that once you apply for a full mortgage.

Go ahead and proceed with your search.

makoto

paint wrote: »

I'm also a contractor. I was recently advised by a specialist broker for contractors to go with either Woolwich or Clydesdale (I was looking for an Offset product). I applied for an AIP with Woolwich but was informed they couldn't give me an AIP and that I'd have to go for a full app with them (I didn't - I went with Clydesdale in the end).

To be honest, I don't see why you need the AIP document. The decision itself should give you a reasonable amount of confidence now that you can look within a certain price range and, if an Estate Agent badgers you for a document, just refer them to your Broker.

Ultimately, it's just an initial assessment of your situation and doesn't necessarily reflect whether or not the Lender will actually lend to you. You will only know that once you apply for a full mortgage.

Go ahead and proceed with your search.

Paint thanks for sharing your experience. As an FTB/contractor I still feel a little concerned that the only lender will not provide anything in writing. I have asked to see something in writing from my broker, even if it comes through them.