Nationwide AIP

breakingbad

Hi all,


My wife and I are first time buyers. We have found a newbuild home in an area we are happy with. The house was already on the market for £229,995, but due to the previous buyer having to pull out, the builders had reduced it to £224,995. Further to this we managed to barter the builders down a bit and finally settled on a sale price of £219,995.


We are going down the Help to Buy equity loan path, so are looking for a 75% mortgage (£164,997). Our mortgage advisor has advised us to go with a 5-year fixed deal with Nationwide, for piece of mind. We are very comfortably within limits on affordability.


He has applied for the Agreement in Principe for us last week, and on Friday they requested 3 months bank statements and recent pay slips for each of us, plus proof of where the deposit is coming from (parents' bank statements). Today they have come back and requested that our parents fill in their own "Confirmation of Gifted Deposit" form.


Is all this normal for an AIP? I thought this sort of jumping through hoops was kept for the full mortgage application? The mortgage advisor says it is quite common, just wanted other peoples' opinions.


Thanks!

stephenni1971

Nationwide will do this for DIPs too. Be prepared for a wait - their systems are shocking.

amnblog

Why do you have a problem with this Garmcqui?

You are going to have to produce all this information at some stage.

kingstreet

This case didn't pass at DIP, the result was a "refer" so it's being underwritten prior to full application.

The broker can still submit a full app on the basis of the refer, but most of us don't because you would lose the £99 booking fee as a minimum, if it is later declined.

A DIP accept would see the same items requested, but post-application instead.

breakingbad

Thanks for your replies.

Ah so you're saying that as the underwriters are scrutinising everything now at DIP stage, they won't have to do it all again at the full application stage?

I don't have a problem with it, I was just worried that we'd get the DIP (hopefully!) and then we'd have to go through all this again with the full application?

So...apart from valuation etc, what else will be left for them to do at the full application stage?

Thanks

kingstreet

Yes and nothing.

Alliersv

garmcqui wrote: »

Thanks for your replies.

Ah so you're saying that as the underwriters are scrutinising everything now at DIP stage, they won't have to do it all again at the full application stage?

I don't have a problem with it, I was just worried that we'd get the DIP (hopefully!) and then we'd have to go through all this again with the full application?

So...apart from valuation etc, what else will be left for them to do at the full application stage?

Thanks

We have had the same thing.
Hubby and myself applied for DIP back on April 1st through a broker. Came back straight away as refer ; The deposit was coming from an inheritance which at the time was being processed but had not been paid, and I had a historic black mark on my credit record, not sure which one caused the refer though.
Our broker was unconcerned and we were asked for all the usual stuff for a full application, which we duly provided. It has been a long road mainly due to hiccups over proof of funds from the inheritance, but all we were asked for since we originally provided documents was our most recent bank statements (to go with the 3 already provided)
Our valuation went ahead on 23rd June, and we recieved a text saying that we had been accepted and our offer was on its way yesterday.
As the broker said to us, you end up having to jump through the hoops at some point, so why not get it out of the way in the very beginning?
Good luck

breakingbad

Thanks Alliersv,


It's good to hear from someone who has been through the same experience.


I'd like to know why our DIP went to refer though - can I find out? We're well within affordability (both full time teachers, joint income £79k, borrowing £165k over 25-30yrs), have no adverse credit etc. When I asked the broker, they said it was quite common for first time buyers borrowing a relatively large (even though I didn't think it was that much!) amount of money to go to refer automatically. Or could it be because our deposit is gifted from parents?


Thanks

kingstreet

Do you have any flats in your address history?

Nationwide has issues with its Experian address targeting system and it often takes several attempts with their phone advice while you are doing it to get it right, or close enough. That does trigger an automatic refer, as does lack of recent electoral roll presence.

breakingbad

Yes, previous address (up to last July) was a Flat, lived there for 3.5yrs

Both of us have always been on the electoral roll though.