Estate agents want proof of deposit and AIP

koneko

Hi all, we've just had an offer accepted on a lovely house and are super excited about it, but I have a question about the next step.

The agents have asked for our AIP and proof of deposit. The AIP should be no problem our mortgage advisor has this and it states that they would lend us over 50k more than we actually need to this property.

I'm not quite sure how to provide the proof of deposit though as some is coming from my account, some from my partners account and my parents are gifting us the rest of the money to make up our 15% deposit.

G_M

I would just refer them to yoursolicitor.

If you show them the AIP, you may find the buyer thinking "hmmm. they can afford a lot more. Let's try re-negotiating..."

Remember the agent works for the seller, not you.

As for the deposit, again, as long as your solicitor is satisfied, the EA does not need to be involved.

AndyGuil

All I told my estate agent was the percentage deposit we had and we had a mortgage agreed. They should not see your AIP.

chanz4

They don't need to see anything, point them to your solicitor

koneko

Thanks everyone, I hadn't thought about that with the AIP. I did think it was odd that they would ask to see these things as surely its only the mortgage company and the solicitor that need them.

We have only just appointed our solicitor. It is the family solicitor on my Dads side who he recently used in the sale of my late gran's house. I didn't think we needed to do this until we'd found the house and made our offer so I'd left it until today. The solicitor is not local as he is based in my grandparents home town about 150 miles away, but as far as I am aware, this shouldn't be a problem. It was more about finding someone we would trust.

AndyGuil

Check the solicitor is approved by the lender. If not you will have to pay twice for your solicitor and the lender's. The best option is your solicitor is approved and can act for the lender as well.

celyn90

We had this issue and asked the bank for advice - the mortgage adviser made us up an AIP that showed what we wanted to spend - not what we could afford to borrow

caeler

I've always found these requests an invasion of privacy and more us need to decline. They really do overstep the mark but think what they are doing is perfectly acceptable. I appreciate some transactions fall through but that doesn't mean they must challenge everybody!

rich5565

The estate agent is asking for this because they want to verify you can afford to buy the house. I think this is a pretty standard request atm and it strengthens your position to provide it.

I think it's actually a good thing if the aip shows you could afford more because it means your offer is restricted by your personal view, rather than restrictions on what you can afford (i.e. it doesn't raise the question about if someone else could afford to pay more, the vendor may be able to get more).

Regarding the deposit, if possible I'd try and get your parents to put the money in your bank account, then show the statement balance (as a screen shot) to prove the deposit funds.

chanz4

aip maybe, deposit no

koneko

AndyGuil wrote: »

Check the solicitor is approved by the lender. If not you will have to pay twice for your solicitor and the lender's. The best option is your solicitor is approved and can act for the lender as well.

This isn't something I've heard of before - I was under the impression that you could go with whoever you wanted for conveyancing? Our mortgage advisor hasn't said otherwise. Our AIP is with Halifax if that makes any difference?