EA refusing to show us properties based on AIP

boldaslove

Hello all,

My partner and I are first-time buyers and have been viewing houses with a number of EA's so far with no issues. However one major chain in the region asked for our AIP before they would book in a viewing and has then rejected our AIP from London & Country on the basis that it doesn't include a credit check. They then tried to push us towards their own mortage advisors. Can they do this? They claim it's a new requirement due to Covid. I do appreciate that they need to ensure we're proceedable and that we'd need to go through the credit check process with our chosen mortgage provider eventually anyway but it feels a little OTT just for booking a viewing?

We're not in a chain and we have a healthy deposit of around 30% available so I would've thought we'd be an attractive prospect for sellers/EA's. 

Thanks in advance for your thoughts.

bob_the_dinosaur

Maybe I am being dence here but they are being complete idiots about this.  Soft searches are common, I think most big lenders do it that way.
What if their advisor finds you a deal and its a soft search? is that suddenly acceptable?
We had to show our AIP when offers were accepted but the agent already knew it existed and where it was from, don't know if it helped that they could just put our postcode into rightmove and see we were selling with who we said we were

AdrianC

Yes, they can.

They have a duty to their customers not to waste everybody's time with non-proceedable buyers. If your AiP hasn't credit-checked you, it's worthless, and you aren't proceedable. For all they know, you have a hideous back story that includes a trail of weeping creditors and seething judges.

Whether you get a valid AiP from their broker or from another is a separate question. What's the worst that can happen with theirs? You spend half an hour and get offered a better deal? Ohnoes.

ChloeManoey

An AIP from London and Country really isn't worth the paper it's written on to be fair. I'm pretty sure all they do is multiply your income etc, they don't check with any particular bank and they don't check you out properly either. It doesn't really have any weight behind it. 

Just pick a bank with a decent rate etc and spend 20 mins doing an AIP. It isn't overly complicated. Either that, or don't go back to that agent. 

bob_the_dinosaur

AdrianC said:

Yes, they can.

They have a duty to their customers not to waste everybody's time with non-proceedable buyers. If your AiP hasn't credit-checked you, it's worthless, and you aren't proceedable. For all they know, you have a hideous back story that includes a trail of weeping creditors and seething judges.

Whether you get a valid AiP from their broker or from another is a separate question. What's the worst that can happen with theirs? You spend half an hour and get offered a better deal? Ohnoes.

being totally dense here.....
My lender gave us an AIP through our broker, we hadn't found a property because the previous one fell through and our previous AIP was for a higher amount and a higher LTV (so was therefore useless).  We couldn't have a full application because we hadn't found a house yet (much the same as the OP),   I really don't see what good going to their broker will do?  

Unicorn_cottage

ChloeManoey said:

An AIP from London and Country really isn't worth the paper it's written on to be fair. I'm pretty sure all they do is multiply your income etc, they don't check with any particular bank and they don't check you out properly either. It doesn't really have any weight behind it. 

Just pick a bank with a decent rate etc and spend 20 mins doing an AIP. It isn't overly complicated. Either that, or don't go back to that agent. 

@ChloeManoey Why is an AIP from L&C not worth the paper it is written on? It didn't hinder me. Sounds like the Estate Agent is being a bit naughty.

Thrugelmir

boldaslove said:

My partner and I are first-time buyers and have been viewing houses with a number of EA's so far with no issues. 

Time costs money and for the vendors a lot of hassle. In the current climate filtering through buyers makes good sense. 

MovingForwards

Unicorn_cottage said:

ChloeManoey said:

An AIP from London and Country really isn't worth the paper it's written on to be fair. I'm pretty sure all they do is multiply your income etc, they don't check with any particular bank and they don't check you out properly either. It doesn't really have any weight behind it. 

Just pick a bank with a decent rate etc and spend 20 mins doing an AIP. It isn't overly complicated. Either that, or don't go back to that agent. 

@ChloeManoey Why is an AIP from L&C not worth the paper it is written on? It didn't hinder me. Sounds like the Estate Agent is being a bit naughty.

Because it's not one from a lender, merely something L&C knock up. A few people have posted before to say it's not acceptable to EAs and they want a proper DIP.

eddddy

It might be worth dropping the EA an email saying something like:

"I just wanted to double check that you've contacted the sellers of 13 Acacia Avenue, and they have declined my viewing request because my AIP is from L&C"

If the seller has genuinely declined your viewing request, you have to accept that.

But if the EA is using this as a sneaky trick to make you visit their mortgage advisor - having to reply in writing to an email, might make them reconsider.

princeofpounds

I've also seen this issue pop up on the board before. As others have stated, the problem is that London & Country are a broker, not a lender. They issue their own 'AIPs', but they aren't truly the same as an AIP from a lender (although you can argue the finer points of how much more meaningful those really are).

Most agents don't care that much about this - they will allow viewings to anyone who sounds sensible on the phone and not ask for AIPs until you get to offer stage, which is actually when EAs have a more formal duty to qualify potential purchasers. But from time to time you get one that is more sniffy about the idea and tries to qualify buyers early, excluding them if they can't show evidence of funds.

There can be a few reasons for this, of varying validity. One is that the vendor has specified it. That's uncommon, but not unknown if they find viewings disruptive; sometimes EAs will steer clients towards this with a little checkbox or something similar given the next two reasons.

Another is that they don't want to waste time themselves.

A further reason is that they want to push you into using their own broker to get an AIP from a lender. This has two big advantages for them: 1) it's a cross-sell and they get commission if you take the mortgage and 2) they know your financial details and that can help a bit in negotiation. The latter reason is not supposed to happen, but often EA-associated mortgage brokers can be a bit 'leaky'.

There are really two solutions, which have already been outlined. One is that you get an AIP from a lender. Another is, as edddy suggest, to force the issue in writing. You can always then approach the vendor direct and query it, but you risk annoying them if indeed they don't want have viewings from unqualified purchasers.

AdrianC

bob_the_dinosaur said:

AdrianC said:

Yes, they can.

They have a duty to their customers not to waste everybody's time with non-proceedable buyers. If your AiP hasn't credit-checked you, it's worthless, and you aren't proceedable. For all they know, you have a hideous back story that includes a trail of weeping creditors and seething judges.

Whether you get a valid AiP from their broker or from another is a separate question. What's the worst that can happen with theirs? You spend half an hour and get offered a better deal? Ohnoes.

being totally dense here.....
My lender gave us an AIP through our broker, we hadn't found a property because the previous one fell through and our previous AIP was for a higher amount and a higher LTV (so was therefore useless).  We couldn't have a full application because we hadn't found a house yet (much the same as the OP),   I really don't see what good going to their broker will do?  

Give you a valid AiP, one that actually takes account of your credit history.

Right now, there is nobody who has looked at your financial life and said "Yep, we will lend you money, if we like the look of the property as security."

L&C have taken the most cursory look at your income alone, and said "We might be able to find you somebody who might lend you up to this much, if they like the look of your financial life and the property."

It's not much more than the mortgage equivalent of a flyer through the post saying "We might give you a card/loan with a limit up to £X and an APR as low as Y%. Apply here."