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What does the new MMR system mean for getting an agreement in principle?
lsryax
Posts: 2 Newbie
Apologies if this is the wrong forum, or if this has been posted before, but I am confused about what the new MMR means for agreements in principle.
We currently have our house on the market and are actively looking for another to buy. We saw something we liked yesterday but I am confused about how to make an offer (that will be taken in any way seriously) without an AIP.
As I understand it, you can no longer get agreements in principle as you used to. I understood the old AIPs could be used to back up your offer, on any property, providing it was under the threshold of the amount agreed in principle. i.e. you could effectively carry them around during viewings, and use to validate that your offer was sound.
Without this I don't understand how we can offer on anywhere until we have an offer on ours? Or is this how it is now supposed to work?
I have been told elsewhere that you can get an AIP if you have a specific property in mind. But how does the timing of this work? Surely, if we find a house on which we would like to make an offer, and only then start the process of getting an AIP for that particular house, by the time we have the AIP there is a chance the house could be gone?
Any advice on the best way of ordering this process, and how we can 'back up' any offers we wish to make, would be much appreciated.
Many thanks.
We currently have our house on the market and are actively looking for another to buy. We saw something we liked yesterday but I am confused about how to make an offer (that will be taken in any way seriously) without an AIP.
As I understand it, you can no longer get agreements in principle as you used to. I understood the old AIPs could be used to back up your offer, on any property, providing it was under the threshold of the amount agreed in principle. i.e. you could effectively carry them around during viewings, and use to validate that your offer was sound.
Without this I don't understand how we can offer on anywhere until we have an offer on ours? Or is this how it is now supposed to work?
I have been told elsewhere that you can get an AIP if you have a specific property in mind. But how does the timing of this work? Surely, if we find a house on which we would like to make an offer, and only then start the process of getting an AIP for that particular house, by the time we have the AIP there is a chance the house could be gone?
Any advice on the best way of ordering this process, and how we can 'back up' any offers we wish to make, would be much appreciated.
Many thanks.
0
Comments
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The AIP situation is not changing.
If you want one engage an independent mortgage broker.
You do not need to have identified a property to obtain an AIPI am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
I'm in your position, I got an agreement in principal with Natwest last week, with the full MMR application next weekend.
I'd just be wary regarding whether the AIP is actually worth the paper it's printed on until the full process has been completed, as the AIP does not include any details on expenditure (other than loans and cc debt), and does not include any stress tests that the full application will consider.0 -
The AIP is like getting an interview for a job.
Your cv looks OK but no-one has interviewed you or offered you the job.I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
Thank you for all your advice. Much appreciated.0
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