Can the final offer lower than AIP

sam2015_2

I've an AIP with Natwest for xx amount. I believe it is valid for 6 months. I wouldn't be making the full application any time soon.
My seller is not in hurry, hasn't found a house to move on but gone away on holiday for 6 weeks.

My question is can Natwest lower the borrowing amount when it comes to underwriting on full application? I'm borrowing the max, tight on affordability.

Has this happen to anyone with any lender, one figure on AIP and lower on application?

capwhitt

With an AIP the underwriters can do one of the following:

-Agree with the AIP and everything is fine
-Disagree with the AIP and suggest alternatives - a higher deposit to improve the percentage - if you have a house they won't recommend a lower amount to borrow
-Reject you altogether

AIPs are an oxymoron really, they don't really mean anything. Some banks (*cough HSBC*) barely honour any of them. Nat West I believe aren't too bad but you aren't guaranteed.

roje

Are you sure about it lasting for 6 mths? My AIP lasts for 60 days.

sam2015_2

roje wrote: »

Are you sure about it lasting for 6 mths? My AIP lasts for 60 days.

Ah! I'm more worried now.
That's what the broker told me. I got to check that with the broker first thing.
Is yours with Natwest too?

roje

Yes with Natwest. It can be renewed though if it expires but obviously it means another credit check again.

ExpertAdvice

The AIP clearly says on it when it expires. Its normally 60-90 days depending on the lender. As suggested by Ruje, it can be renewed but another credit check.

Also, Natwest does a full credit check not a soft search.