Help please! Do I have an AIP

Pricey22

Hi,
Can anyone please help? We have done an AIP through a mortgage broker - done as a soft credit check. As evidence we have a hand written certificate with the brokers company logo on it.

He says this is enough evidence for the estate agent, but we put in an offer and the agents' financial advisor said that there should be a certificate directly from the lender. It doesn't appear our broker has this documentation. Does that mean he hasn't really done us an agreement in principal? Which person is right?!

I'm really confused!

Thanks,

Sarah

bobobski

The AIP isn't a legal document so neither of them is "right". However, for these purposes, the agent is "right" because he decides what is satisfactory for him.

Pricey22

Thank you. So there isn't really a "standard" for what documentation is provided for an AIP? Most people I know do seem to have a certificate and supporting documents from the lender so I was surprised not to have the same but the broker assured me that was fine. I just worry I don't really have an AIP and he's just pumped numbers into a calculator. (I realise an AIP isn't a lot more than that but it does have a bit more consideration of personal circumstance!)

bobobski

There are other people on here who are much more knowledgeable than I am about AIPs, but I received mine last week and as you say it was a full certificate. The fact that you don't have one does not mean that the lender has not decided, in principle, to offer you a mortgage. The agent is just asking for the usual evidence of that decision I think, which is the certificate. I'm being a pedant, I know, but trying to distinguish the decision itself from the certificate.

The broker works for you, and he should be providing you with what you need to proceed with your purchase (within reason!). So if you ask for a certificate and he says no, I would push him and ask why... He might not think it's necessary but the agent sure does.

Pricey22

I think that's a good point. I did ask before for more information but he implied there wasn't more and wouldn't be until the full application stage. It was hard enough getting him to tell us who the lender was! I guess I'm just wondering what information he has from the lender to confirm they would lend to us in principal as i would have thought there must be something.

Thanks for sharing your thoughts. Maybe I should look for a broker who is more willing to disclose all the information!

bobobski

He may not be disclosing it to stop you from applying yourself and cutting out his fee. Perhaps if you reassure him that you won't do that he'll be more willing to divulge?

Pricey22

Fair point. That would make some sense. I don't know if that is quite common practice among brokers. With nothing to compare it to I may be over thinking things and panicking needlessly.

kingstreet

A broker might do an affordability check only and call it an agreement in principle (London & Country, for example)

A broker might do a soft-search AIP with a lender which doesn't issue certificates, (yes there are some) so the broker issues a certificate itself.

A broker might do a soft-search AIP with a lender* and doesn't want you to know the lender at this stage, so the broker issues a certificate itself.

*Our view is that you should have an illustration before you are asked to sanction an AIP, so you should know the lender the AIP will be with.

Pricey22

That's really interesting. Thank you for that information. I asked how the figure was worked out and was told it was based on affordability calculator and a soft check with Halifax. I would have thought Halifax would provide their own certificate. But even when the estate agent contacted our broker directly only the broker's certificate was supplied. Which makes me question things!