More info needed on AIP's?

Angelboots

Hi Guys,

I need some advice.

My broker has recently informed me that Abbey have given me an acceptance in principal which will last for 2 months.

My broker has stated that i should now start looking for a property; however im unwillingly to do this without finding out more information first.

Im sceptical because i have been refused by several lenders in the past after they conducted a credit check (my partner has a recent settled default).

In order to get an Acceptance in principal, would the lender have completed a credit check first? I have checked my experian file and it doesn't appear there has been a search from Abbey.

Would Abbey send me any written confirmation of this AIP?

I don't want to waste time looking for a property in such a short space of time only to be disappointed when we submit the property application.

Thanks for your help.

K

NatashaP

I'm also very scared about going ahead with putting in an offer on a property despite having an AIP for the same reasons - although we are 'near-prime - I'm in denial about anyone ever wanting to lend to us lol! I'm also worried about them telling us after making the full application that we cant borrow the originally agreed amount, which makes me a bit uneasy about looking for properties close to the top end of what we've been offered in principal.

I have been assured numerous times by our mortgage advisor that the lender has credit checked us though - all we need to do now is put in a full application. I have been told that it is unlikely to fall through now unless a) the house wasn't satisfactory to the surveyor or b) we couldn't prove our incomes etc.

We haven't had written confirmation of an AIP either, although we haven't checked our credit file so dont know if their search shows on there or not.

herbiesjp

Angelboots wrote: »

Hi Guys,

I need some advice.

My broker has recently informed me that Abbey have given me an acceptance in principal which will last for 2 months.

My broker has stated that i should now start looking for a property; however im unwillingly to do this without finding out more information first.

Im sceptical because i have been refused by several lenders in the past after they conducted a credit check (my partner has a recent settled default).

In order to get an Acceptance in principal, would the lender have completed a credit check first? I have checked my experian file and it doesn't appear there has been a search from Abbey.

Would Abbey send me any written confirmation of this AIP?

I don't want to waste time looking for a property in such a short space of time only to be disappointed when we submit the property application.

Thanks for your help.

K

If the AIP has been submitted on-line and accepted by Abbey, the broker has the ability to print off the AIP for you.

Ask them for a copy of the AIP

HTH

dwsjarcmcd

Most AIP's don't leave a footprint on your credit file but they do undertake a credit check. The reason they do this is that unlike a full application, you have not actually applied for credit yet. It's known as a 'soft footprint'. If you go on to apply with the Abbey, that would leave a 'footprint'. As herbiesjp as said, have a chat with your broker.

Fashionably_Late

We had an AIP with Chelsea that agreed to lend us the money. But once the full application was done, they said they would still lend to us but on different terms. They wanted 15% LTV versus the original 90% and wanted to charge us a much higher rate. We said no and went to another lender through our broker and they agreed immediately.