Such a big difference in AIPs?

Avicov

Hello all,


I am looking at Halifax, Natwest and Santander on their intermediaries sites.


I am surprised at how big a difference the quotes are with the same info between Halifax and the other two lenders.


- We have a combined income £103k.
- £380 PCP
- Will clear £20k credit card debt from proceeds from the sale of our property.
- No adverse credit history.
- Deposit of £400k


This is what is being offered:


Halifax £414k
Natwest £517k
Santander £518k




I know these are AIPs but I was wondering why Halifax was so low on the offer?


We are looking to secure £500k mortgage on the above criteria. Any experienced people out there who think £500k should be fine with the above criteria with most lenders? I am with Halifax right now on my current mortgage but looks like I will have to ditch them.


Thanks all!

In_For_A_Penny_2

Don't have the experience or knowledge to comment on your main question.

Just one note and I don't know if it's true but I was cautioned against applying for too many AIP's at the same time due to credit checks etc

Avicov

In_For_A_Penny wrote: »

Don't have the experience or knowledge to comment on your main question.

Just one note and I don't know if it's true but I was cautioned against applying for too many AIP's at the same time due to credit checks etc

No worries... I won't be doing that. Just checking the online tools the brokers use. That's why I am trying to see why there is such a difference and who to approach directly.

Jason_Bourne_2

Avicov wrote: »

No worries... I won't be doing that. Just checking the online tools the brokers use. That's why I am trying to see why there is such a difference and who to approach directly.

Different income ratio calculators?


Some will take a straight joint income calculation others might multiply each income differently and added together.

kingstreet

I assume they are affordability calculations, not agreements in principle.

Avicov

kingstreet wrote: »

I assume they are affordability calculations, not agreements in principle.

Yes you are right. I used the affordability calculators on the intermediaries sites. Can they be pretty off the ball in terms of the AIP?


Basically, I am with Halifax at the moment. Bu they seem to be offering £100k less than the other two. So it seems they aren't even worth me getting an AIP? Surprised by the bug gap. I thought Halifax were one of the better lenders.


Anyway, do any of the brokers see me having any problems with getting the amount I need with our criteria.

kingstreet

The output from the Halifax calculator is different for me than what you've said, so it would be pointless to speculate.

Speak to an independent broker and have these done properly if you can't rely on the outputs.

Avicov

kingstreet wrote: »

The output from the Halifax calculator is different for me than what you've said, so it would be pointless to speculate.

Speak to an independent broker and have these done properly if you can't rely on the outputs.

Could I ask what the output was on your calculator out of interest please?

kingstreet

Unless we entered exactly the same data, the output would always be different. I don't know the split of your incomes, the mortgage term etc so my output was never going to be as accurate as yours.

audigex

If you're using affordability calculators rather than regular "income multipliers" then you're simply seeing the results of different lenders taking different spending into account, and giving different weighting to debt, expenditure, dependants etc.

Mortgage_Mark_2

Avicov wrote: »

Could I ask what the output was on your calculator out of interest please?

I got £463k, but then I don't know if you have children, or how the income breaks down.