Multiple Mortgage AIP's - any downsides?

chile_paul

We currently have an AIP from Tesco Bank on a 60% LTV mortgage at 1.25% on a 2 year tracker.

However Yorkshire Building Society have in the last week or so launched a new fixed rate at 1.18% for 2 years which is more attractive.

We're keen to get an AIP from Yorkshire Building Society on the understanding that this would guarantee that rate for us from a set period of time even if the rate is withdrawn from the market (we expect to be proceeding within about a month).

Are there any downside's in doing this? I've heard that multiple mortgage applications can adversely impact credit ratings, I'm not sure that the 'light' credit check typically done for an AIP would fall into this bracket or whether this would only be a full blown application? Given that we have an otherwise clean credit record is this likely to be a problem?

Thanks

amnblog

It's is unusual for an AIP to secure a rate.


Multiple AIPs are rarely a good idea, 'light' or otherwise.


Let's hope you don't get wind of the 0.99% rate on the market!