Agreement in Principal?

NatashaP

Does an AIP mean you are likely to be offered that particular mortgage when you make a full application? I am a little confused about what an agreement in principal really is!

homer_j_3

it just means that on the information provided they should be able to provide you with the loan.

Unless its a binding decision, no agreement in pricipal will guarantee you a loan as lenders will normally want to see payslips, employers refs, bank stats and a survey before making a full offer of a mortgage.

Its good to be accepted on AIP but not binding means lender can change their min should something come to light at a later stage which they are not happy with

NatashaP

So, I take it they've already done a credit check on you before agreeing a mortgage in principal?

JoeK_3

Part of the application process is to conduct in depth credit checks and a valuation.

Do you have any credit problems that you have not divulged on the AIP?

JoeK

NatashaP

JoeK wrote: »

Part of the application process is to conduct in depth credit checks and a valuation.

Do you have any credit problems that you have not divulged on the AIP?

JoeK

We do have past credit probs which we were very honest about - our broker took all this, along with our earnings, performed a light credit check himself in order to find the most suitable lender then found a lender who have now given us this AIP (and I've checked with the broker a million times - defo an AIP done by the lender!)

I was just a little confused as to what an AIP actually meant! If it formed part of the actual application process or was just a quick "yeah, we might lend to them" kind of thing, based on what we told them, without actually checking us out so to speak?!

Thanks for the advice!

NatashaP

How often does an AIP actually lead to someone getting turned down when it comes to the actual mortgage application? I'd be gutted if that happens to us!

homer_j_3

It is more than likely a credit check will have been carried out. Providing there are no material changes from the information provided for the agreement in principal, there should not be any issues.

NatashaP

Thanks! Hopefully we will be ok in that case - it was the credit check I was most worried about to be honest!

terese

NatashaP wrote: »

How often does an AIP actually lead to someone getting turned down when it comes to the actual mortgage application? I'd be gutted if that happens to us!

I received an AIP with preferred mortgages in April and was promised faithfull by my broker that after that I will get an offer within 3 weeks. I made the full application and thought that there shouldn't be any problem at all because I supplied all the documents that they asked for. so I went down to dfs 2 weeks after to purchase my sofa which normally takes 12 weeks to arrive.

My sofa is here and still no mortgage. 2 weeks ago preferred mortgages said that they can only lend me £12000 less than what i asked for.the underwriter took 4 months to come up with this.

Chimpfeet

We have had an AIP for our remortgage. Its in the process of going to the underwriters. I keep asking our broker what the chances are of getting turned down (I'm really relying on getting it and everyday is a nightmare!!) also our mortgage processor person has gone on sick leave (how dare she when my life is in turmoil!!!!!!!!!) so someone else is now dealing with it. Today is Tuesday the broker said we should hear something by Friday and she seems to be positive but they can't give you a definite answer can they? Did you get your mortgage approved I notice your thread was posted last week??:eek: