RBS - agreement in principle?

amateurcynic

Hello

FTB trying to get my head around all the ins and outs of mortgages.

Went into an RBS branch today with my partner, hoping to begin the application process. We've researched various offers, deals, what we can afford etc and have the funds ready.

We wanted to get an agreement in principle before looking at houses but the branch manager told us that this is not something RBS does. He said that we couldn't begin the application process until we had an address for a house we wanted to buy.

Can anyone confirm if this is correct? For various other reasons I was not impressed with his advice or understanding of the process so I'd like to be sure that there's nothing else we can do for the moment.

Thanks in advance for your help, very confused and stressed!

ispookie666

AIP/DIP is sonething which EA's like to see. I had obtained mine from natwest; but was virtually useless.
Yes, you need to have a house lined up before you start he application process.

kingstreet

If you want an agreement in principle, get another lender or see a broker. Presumably this is another 95% case and there will be more lenders on HTB - MG in the new year.

amateurcynic

Thank you ispookie. The guy we spoke to today said he is going to give us some form of letter stating how much they would lend us. (yet to see it, 'the systems were down' so I have to go back to the branch later.)

Given that no credit checks or any other checks were done, I feel as if EAs are going to laugh in my face when I present it.

Wondering if it would be worth going to another lender who can offer a full AIP?

amateurcynic

Thanks kingstreet. Indeed 5% HTB. So as far you know it's correct that RBS/Natwest won't be able to give a full AIP?

ACG

AIPs are not really worth much anyway.
But not all lenders offer them, so the person you spoke to is not necessarily incorrect - i do not know what RBS procedure is. I applied for mortgage with them around 5 years ago when i used to work for them and i dont recall them giving me an agreement in principle at the time. I t was a while back so things could have changed but i hardly think the person there is going to avoid giving you a DIP to be an !!!.

amateurcynic

Thank you AC.! Ha, I'm sure he wouldn't have neglected to give us a DIP out of malice...he just seemed slightly clueless.
But to be fair so am I so I probably shouldn't have jumped to conclusions!

ispookie666

amateurcynic wrote: »

Thank you ispookie. The guy we spoke to today said he is going to give us some form of letter stating how much they would lend us. (yet to see it, 'the systems were down' so I have to go back to the branch later.)

Given that no credit checks or any other checks were done, I feel as if EAs are going to laugh in my face when I present it.

Wondering if it would be worth going to another lender who can offer a full AIP?

Natwest had given me with a letter saying they would lend anything upto x amount will the deposit and could afford upto y amount(dependent on the income). The EA's want to see this(from my little experience) as they want to filter out the time wasters and they can know if you are genuine.

AIP does not involve any credit checks.

faeryty

After asking for a DIP from RBS for their HTB2 mortgage, I've a letter from them giving an amount they they may be happy to lend us based on deposit of X, verification of salary, credit checks etc. This letter didn't involve any credit checks, but I have since done one with Yorkshire Building Society which did involve a credit check.


I'm now at the point where I've had an offer accepted and am actually planning on using Yorkshire because my calculations say I'll be better off by £526 over the 2 year deal term of the mortgage. Doing the full application tomorrow in branch. But the EA has never asked to see any agreement in principle from me - I think everything all depends on the individual lender and EA.

J_Devon

I had a very similar experience with Natwest recently. I bank with them so went to have a chat but came out quite disappointed as they showed no real interest. No offer of AIP/letter etc...

HSBC were a totally different story. Couldn't do enough to help me out, various prints of different mortgages options, talking me through the various stages and gave me a letter to show what they'd be willing to lend.

Two totally different ends of the scale which is a shame..