Skeptical about online MIPs/AIPs

scaredycat94

Ive done a few MIP/AIPs forms online in the past, most recently with my own bank via a link on my online banking. For the most part, they've literally just sent me an email saying they'd give me the amount i've put down (£109,250). Once I got a downloadable PDF... is this really a formal MIP?
Is that a daft question? Or am I missing something here?

I see a lot of people on here and other forums elsewhere, fretting about getting their MIPs, and for me that was so easy and took 5 minutes if that...

MovingForwards

That's all a MIP / DIP is.

The more detailed stuff goes on when an application is submitted and they look into wages, credit history, viability of the proposed property purchase.

People get concerned as it's generally at that stage any issues with previous credit history could see a rejection.

ACG

It is exactly what it says in principle.

Providing you have entered the information as expected (which may not necessarily be how you would expect to enter it), then it should be ok.

Also be areful about doing too many DIPs, some of them are hard footprints. Too many of those and you can scupper your chances of getting a mortgage at normal rates.

ScottishSaver14

It's a guideline. Are you complaining that banks are saying 'in theory, we would lend you X amount'?

If one had knocked you back I suspect you would not have been so mistrusting

It's not a guarantee, because it's based on limited information. But it's a good start. That's why people get flustered when it goes awry, because it's supposed to be the easy bit.

Stop getting AIPs in the hope that one declines you, and when you're ready to apply for a mortgage the indications are you should be fine.

scaredycat94

Thanks ScottishSaver14, your change of perspective was helpful.
You're right, I'd believe it quicker had it said I was rejected!


I'm also just querying the validity of an AIP I've received as an email simply stating they've agreed the amount IP. When an estate agent asks me to present an AIP when making an offer on a property, all I've got to present to them is a daft email sent from Barclays - I guess I just expected to receive something more formal, like a letter.

ScottishSaver14

.hen an estate agent asks me to present an AIP when making an offer on a property, all I've got to present to them is a daft email sent from Barclays - I guess I just expected to receive something more formal, like a letter.

It will be fine. EAs just need to cover their backs. I never even showed them my AIP. Just said I had one. You don't NEED to show it to them, but whatever you have would be fine.

DW I was skeptical too. But then, I just got my mortgage application approved in a day and a half....so I'm waiting on the paperwork before I believe it haha.

ScottishSaver14

Ps. Remember it costs money to send letters. Anyone can do an AIP, that would be a lot of letters for not much reward. Hence the low cost email

chunkytfg

scaredycat94 wrote: »

Thanks ScottishSaver14, your change of perspective was helpful.
You're right, I'd believe it quicker had it said I was rejected!


I'm also just querying the validity of an AIP I've received as an email simply stating they've agreed the amount IP. When an estate agent asks me to present an AIP when making an offer on a property, all I've got to present to them is a daft email sent from Barclays - I guess I just expected to receive something more formal, like a letter.

Think about it this way. A DIP/MIP is the banks way of saying 'We've had a quick look at your credit report and if everything you told us so far is roughly right we'd be prepared to lend you the money so here a bit of paper to show an estate agent so they take you seriously'

Then the actual mortgage is 'We've been through your history with a fine tooth comb to check you can afford to pay back the money and you don't have any skeletons in the closet we don't like plus we've looked at the house you want to buy and think its worth what your paying and a good security against the money we're lending you'.

The people who are scared about getting the MIP are the ones who have skeletons in the closet they have forgotten about or are hoping getting missed or are borrowing 100% and then some of what all the rough calculators are saying they could borrow.