A full mortgage offer is better than an AIP, right?

Mortgage_Moog

Ok I know you're probably thinking this is a stupid question but I have been through the 3 hour meeting, had underwriters check my application and have had a full mortgage offer in the post.

I was going to buy a flat but found out something bad about it on the valuation so am now looking for another property. After speaking to several estate agents, some seem to imply that my full written offer is no better than an AIP and they insist on calling what I have an AIP when I consider it to be something far better.

Surely having a full written offer puts me in a very strong position, better than someone who just has an AIP? I have checked with Woolwich and they say all I need to do is provide details of the new home I want to buy, no need to redo the meeting or any further credit checks.

Am I right?

amnblog

If you spend your life listening to what Estate Agents say, you won't learn much.

Mortgage_Moog

amnblog wrote: »

If you spend your life listening to what Estate Agents say, you won't learn much.

My thoughts are that maybe they're trying to downplay what I have to make me think I don't have much to bargain with. I think having a full offer puts me in a very strong position, almost as good as a cash buyer.

amnblog

They are morons.

Probably trying to dissuade you as you have already rejected a property that went to the 11th hour.

If they don't 'like' you as a buyer they should be upfront with you.

ACG

A mortgage offer is exactly that. Assuming the legal work flags up no issues and your circumstanes remain the same they will release the funds.

A decision in principle just means you have passed the initial credit check but no underwriting has taken place.

Depending on the lender you may be able to transfer the offer to a new property without any problems - ignore the estate agents.

Mortgage_Moog

amnblog wrote: »

They are morons.

Probably trying to dissuade you as you have already rejected a property that went to the 11th hour.

If they don't 'like' you as a buyer they should be upfront with you.

I wouldn't say it was the 11th hour. I changed my mind as soon as the valuation was done, only two weeks after making the offer and before I'd even got searches done on the place. I know what you mean and I can see how some sellers maybe put off by someone who's pulled out of a deal but I'm sure sellers change their minds too.

Finst

To be fair to the estate agents, I can see their point. A full mortgage offer is granted once the lender is happy with (a) you, and (b) the property. Until you've had a survey done, whatever you want to call your mortgage offer could still be withdrawn if the lender doesn't like the property (so is not the same as a cash buyer)

Ultimately, does it make enough difference to stress about? As a seller, I'd certainly be happy with an AIP.