AIPs/DIPs - how much do they mean

Needanewhouse

Hi all

How much do AIPs mean?

I used Natwest and Barclays as both do soft searches, I used Barclays for a sole application in my name, and Natwest for a joint application in both our names.. I done this as my wife has a little more debt balance in her name compared to her income.

I was offered £160,000 with 10% deposit with Barclays and we were 'offered' £220,000 with Natwest.

The part I was worried about was the size of debt.. we both have quite large loans taken out over a year ago now.. These monthly outgoings were taken into consideration in the AIP applications.

Assuming all other factors in the credit histories past 3 years ago are fine (as I know aip sometime only cover 3 years ago) should full applications be ok? What I mean basically is, are the two banks that have offered AIPs ok with the loan sizes considering credit searches have passed with these loans considered?

Cheers, no digs or anything cheeky.. Just looking for answers :rotfl:

ACG

Woolwich do not do soft searches, I do not think natwest do either.

Woolwich have a rule on how much your debt can be (debt to income ratio), Iforget how much but I think its around 50% of your annual income?

ACG

I forgot to say, if your only issue is affordability then why do a DIP? Just jump on their online calculators.

alchemist.1

If you apply directly to Natwest (online), they do a soft search.

Needanewhouse

ACG wrote: »

I forgot to say, if your only issue is affordability then why do a DIP? Just jump on their online calculators.

Thanks for the reply ACG.. I double checked with both Barclays and Natwest before doing the online AIPs and both said they soft searches.

Sorry!! My issue isn't affordability.. We have seen houses at £130k roughly that we like.. All our outgoings are in order are all ratios of debt to income overall are fine.. With 7% stress tests on payments at 150k.. Looking to have comfortable payments to dig into the equity.

The only issue is 10% deposit.. Both the AIPs I plugged in 10%... Does this mean our credit histories are satisfactory for them to give me/us a 90% LTV?

ACG

I think Woolwich have been telling some porkies then - unless things have changed since I last spoke to an account manager there.

Without knowing more its difficult to say, but if the only issue is the deposit then I imagine you will be fine as its not exactly an issue.

minimike2

ACG wrote: »

Woolwich do not do soft searches

Incorrect.

There is an online "AIP" which does a soft search.

The broker / bank DIP system does a full search but the online AIP system for customers performs a soft search only.

ACG

Every day is a school day.