AIP - Proof to EA

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Dear All,

Looking at a repossession property at present and EA said they would not accept any offers until they see the proof of AIP. Went to Natwest today and mortgage advisor said AIP means it will not be written on paper, if I need to show paper proof then need to do a full credit search application and will tie into paying the £999 fee even if I don't take out the mortgage.

Please can anyone clarify - is this true? Can you get a formal letter stating that the AIP has been approved or is it only a verbal confirmation?

Do I need to tie into a mortgage like this? I am really confused...... Please help!

Wh05apk

No, unfortunately they are talking tosh!

An aip does not commit you, and no fees should be payable, if they cannot give you what you need, find another lender or broker who can.

UrWntr

The Post Office will give you an AIP in about 5 minutes. All you need to do is fill in the online form and allow them to do a credit check.

https://www.mortgageapplicationservice.co.uk/postoffice/EndPoints/Public/Logon.aspx

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UrWntr wrote: »

The Post Office will give you an AIP in about 5 minutes. All you need to do is fill in the online form and allow them to do a credit check.

https://www.mortgageapplicationservice.co.uk/postoffice/EndPoints/Public/Logon.aspx

Thank you, as a side note - have you tried post office mortgage? Are they any good - what I mean is do they process the application quick enough as I need a 28 day turn-around.

UrWntr

reload wrote: »

Thank you, as a side note - have you tried post office mortgage? Are they any good - what I mean is do they process the application quick enough as I need a 28 day turn-around.

I'm using them right now.

- Submitted my full application on Monday.
- they completed the valuation on Wednesday
- on Friday they confirmed that my application is approved subject to P60 and payslips which I sent on Friday

They have been very quick and have kept me updated via SMS and phone.

So far so good.

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UrWntr wrote: »

I'm using them right now.

- Submitted my full application on Monday.
- they completed the valuation on Wednesday
- on Friday they confirmed that my application is approved subject to P60 and payslips which I sent on Friday

They have been very quick and have kept me updated via SMS and phone.

So far so good.

I am very grateful to hear your advice, would you mind me asking - do you feel there's a need to go through a mortgage application using a broker (as apparently it may help with getting approved) or shall I be brave enough to sort everything on my own (online)? What would you suggest? As I am FTB everything seems daunting...

mimimt

Another lender to try would be ING Direct. You get your AIP in 5 minutes. I called them on Friday and they said that they would instruct a surveyor within 48 hours who will then perform a valuation within 5 working days. At the same time, they'll get the applicant to send in some docs (proof of income and identity, basically the usual stuff). The full process should not take more than two weeks unless the applicant is extremely slow in providing the documentation required.

Hope this helps

mimimt

Another thing I would recommend is to sign up for a free trial at creditexpert.co.uk to check your Experian credit score. If you are in the good/excellent category, you shouldn't worry. Plus some lenders who have the most competitive products only deal with direct customers.

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mimimt wrote: »

Another thing I would recommend is to sign up for a free trial at creditexpert.co.uk to check your Experian credit score. If you are in the good/excellent category, you shouldn't worry. Plus some lenders who have the most competitive products only deal with direct customers.

Thank you for this, I regularly check my experian report and it is showing as 999 which is in the excellent category. I do hear a lot in this forum that the experian score doesnt mean anything as the lender does there own rating, what do you think about this?

If i get accepted somewhere else (in principle) do you think i can still go ahead and apply for another mortgage or will one mortgage search on my credit file lower the score?

mimimt

I got AIP from ING yesterday on their web. I think ING at least relies on Experian report/score. In the short space of 2 seconds, they made both a identify check and mortgage application check on Experian. Even if they have an internal system, I'm guessing that they will still rely heavily on information drawn from the Experian report. They can work out affordability by the gross income you state on your AIP application, but they can't verify your credit worthiness (e.g. whether you've been late on payment) without checking your credit report. Btw, my score dropped from 997 to 940 after ING's check.