Daft Agreement In Principle/AIP Question

seabass90

Hi guys, just a quick and daft question.

I'm looking to get an Agreement in Principle sorted in the next few weeks. Let's say my AIP was for me to lend £100,000 for a £125,000 property (£25,000 deposit). Let's say I put an offer on the house for £100,000 i.e. 25k less than the asking price, and it's accepted. This means that I obviously won't want to go ahead with the exact same mortgage deal i've got in in principle, because I wouldn't need to borrow as much money - I would want to reduce my borrowing to just 75,000 instead, for instance.

So what would I do then!? Would I have to apply for an entirely different mortgage, or am I missing something here?

minimike2

Your AIP is for UP TO £100k. When you make your application you just advise of the purchase price and how much you want to borrow. You don't need to get another AIP. Unless you go to a different lender of course.

seabass90

minimike2 wrote: »

Your AIP is for UP TO £100k. When you make your application you just advise of the purchase price and how much you want to borrow. You don't need to get another AIP. Unless you go to a different lender of course.

Great, thanks Mike!