AIP and DIP

WLITC

Sorry if its a stupid question, but can I confirm that ..

AIP - An agreement in principal, i.e based on a soft search and basic info provided. Give you a rough idea if you are able to make a full mortgage application?

DIP - Decision in principal, i.e full mortgage application, everything checked financially (credit history, proof of salary, etc) and if you get a DIP that means that you've been excepted subject to house passing survey, etc?

ACG

AIP/DIP = same thing.

Different lenders have different names for them. Typically it will involve a credit check and checking the basic details are suitable for the lender in question.

You would still need to make a full application and evidence whatever it is the lender requests and then have a valuation done.

Thrugelmir

Pre full mortgage application then lenders will only quote "in principle". Agreement or decision are the same thing. Could be given a fancy name as well such as a mortgage certificate.

kingstreet

No difference.

Some aren't worth the time of day.

Others are very reliable.

WLITC

Okay thanks, didn't realise they were one and the same.

kingstreet

The most ironic expression is that coined by our friends at Halifax.

The "Mortgage Promise" has to be about the biggest misnomer out there. It's a soft search of only your latest addresses in the last three years which fails to pick up adverse credit in years four to six at previous addresses, despite these being searched at full application.

It is not reliable, IMHO.

L&C and NatWest also issue "agreements in principle" based only on income/expenditure and have no credit search to underpin them.

Dave_Ham

It is all about experience and the way an AIP/DIP/Application is keyed.

Woolwich have a provisional accept subject to underwriter approval and Natwest tend to refer a lot of cases for full application that are borderline.

Nationwide will refer or request all sorts of documentation, which will still tend to be a fail if near the mark.

Halifax "Promise" does not always pick up previous/maiden names whereas it will at full application.

Is the question of a general nature or specifically for you as I would imagine your previous financial history (as per other threads) would preclude you at the current moment.

kieron79

I thought natwest did a full search at AIP? We used a a broker and a search def showed on credit file with equifax though we didn't oroceed with application

kingstreet

kieron79 wrote: »

I thought natwest did a full search at AIP? We used a a broker and a search def showed on credit file with equifax though we didn't oroceed with application

If you do it through MTE, it's a full search DIP.

If it's done on the NatWest website, it does no credit search.

kieron79

Thanks for clearing that up kingstreet, just out of interest, what are natwest like to deal with? Only ask as we are looking at selling again so may go back to these as they were willing to lend us the largest amount based on salary/outgoings.

kingstreet

I find myself trying to frame a reply and can't think of much more to say than "NatWest is a mortgage lender," in the hope that phrase conveys all the vagueries of dealing with lenders. End of.

I'd struggle to say much more than the above, substituting the words, Halifax, Nationwide, Santander, Woolwich, Principality etc in place of NatWest, to any similar enquiry.

Every time you submit an application to a mortgage lender, you spin the roulette wheel and see which number the ball drops in...

You just hope the wheel actually has an equal number of black and red spaces and no more than the usual 1, or 2, "0s."

(The double zero wheel being preferred by our colonial cousins in the US, of course.)