Do we need a DIP from a bank as FTBs?

mildredalien

As first time buyers my husband and I contacted London & Country brokers looking for advice re: mortgages and getting a DIP/AIP to put us in a good position for offering on a house. The broker we spoke to sent us a 'decision in principle' based on affordability criteria (basically our joint earnings). He also gave us some ballpark figures of what mortgages are available based on our likely LTV. However he said that this would be all we need until we actually find a house that we want to offer on, at which point he would do the more detailed credit checks and give us a specific recommendation for a mortgage.

I was under the impression that a DIP/AIP from a bank would be the best way forward as it provides a bit more certainty that we could borrow the amount we need... I raised that my husband and I have both had credit issues in the past but he said that as there are no defaults in the last 6 years (and neither of us have had any CCJs etc) we shouldn't have any problems.

Is he fobbing us off or do we really not need to bother with a banks DIP/AIP at this stage? We haven't started viewing houses yet but want to make sure we could move quickly if we found something we liked.

betmunch

Sounds like fobbing of to me.


In your situation I would suggest you get a copy of your credit report (or all three if possible) fro a broker who will review them and then advise if you should get a DIP or not before offering.


L&C only want quick easy business, it sounds to me like you want more hand holding and analyse than they would give

mildredalien

I'd just always thought that a DIP from an actual lender was the best way to go but he didn't seem to think it mattered which surprised me a bit!

We went to a couple of estate agents today and they seemed happy with us saying with had an AIP from a broker.

ACG

I try to avoid doing DIPs until you have an offer accepted on a property. I tend to send an email confirming I have reviewed your credit reports in conjunction with a factfind and am confident I can obtain a Mortgage.

The 2 main reasons for hat are:
1) Whoever you do a DIP with today, is not necessarily who we will apply ith tomorrow, rates and products change as do criteria.
2) A lot of DIPs display how much you can lend. Give that to an estate agent and they may use it to drive the price up knowing how much you can afford.