Does bank run credit check when applying for AIP

cnuk

I want to ask for AIP from lender, and have a few questions here:

1. Does bank run credit check when processing AIP application?
2. How long is AIP valid for?
3. Could I request AIP from more than one lender?

Could anyone advise please? Many thanks.

betmunch

1. Yes
2. Depends on the bank - between 14 days and 90 days off the top of my head
3. as many as you want, although you will damage your credit file the more you request

Thrugelmir

The credit check for the AIP may not pick up negative data. Depends on who the lender uses.

cnuk

Thanks for the advice, betmunch and Thrugelmir.

I'm a first time buyer.Really confused where to start from now. My understanding is that I need get AIP first, then start looking for a house, so that I know how much I could afford. If I do this,

1. house price is more likely to be different to what I asked for . Will lender check my credit again when apply for mortgage? Would first credit check for AIP damange my credit rating?
2. It may takes more than AIP valid period to find house. By the time I find the house, AIP might have been expired.

I'm really confused about the steps of buying a house now. Could anyone advise? Many thanks.

gazfocus

As a potential FTB myself, I would highly recommend finding a local Independant Whole of Market Mortgage Broker. They will be able to look at your income/outgoings, etc and advise you of the sort of mortgage you could afford.

Then when you've done that, I would start looking for a house and get the AIP once you've found a house that you want to make an offer for.

betmunch

no, if you confident you have conducted your previous credit well then I would just work out how much you can borrow on an affordability calculator then start looking.

In my opinion you only need the AIP before you offer. Although EA based advisors and the EA's themselves may tell you otherwise.