Approved in principle - however no credit check

happyhatter

I have just been told I have been approved in principle for a 375k mortgage on a 500k property, yet this is without any credit check. Surely one of the main points of AIP is the credit check? I have been in contact with the broker to ask the same question but thought I would raise the issue here too check his response.

Dave_Ham

Assuming it is with Halifax, they do a soft print credit check which does not show.

If not, then the credit report may not have been updated by the lender.

Typically, you get an AIP certificate from most mainstream lenders on order to validate. This is usually what an Estate Agent would also want.

Hope this helps....

happyhatter

Hi Dave,

Thanks for quick response. Its actually with Ipswich Building Society and it specifically states no credit search yet done. I am loathe to get my lovely wife all excited, busy finding a property and then turned down when the application is more thoroughly considered including proof of salary etc etc.

Dave_Ham

The broker is correct that Ipswich do not credit search. Rather they look at what is on your credit report and then choose whether to progress or not.

I use Ipswich quite a bit as they can be more flexible on criteria, although be aware they are incredibly slow as they underwrite everything manually and do not have the infrastructure of a highstreet bank.

They will decline at AIP though if either credit, income, age or anything else does not fit so this is good news.

There is a long way to go so do not get anyone over exicted just yet, but from a mortgage perspective they are less likely to decline based upon fixed variables.

This said, they will go through your bank statements with a fine tooth comb, so anything that has not been declared on the AIP will be investigated and questions raised...

All the best.

happyhatter

Dave, many thanks! Have a great day (currently 91 degrees here in Saudi Arabia but I am sure you didn't want to know that)!

Thanks again