When to get a DIP?

Capri84

So we’ve got 5% deposit saved up, but obviously for the next few weeks or so 95% mortgages are a bit thin on the ground. 

Then suddenly the ‘right’ property popped up on the market a few days ago, so we’ve booked a viewing on Saturday. We don’t currently have a DIP, but could easily get one and the broker said ‘say the word’ and he’d get one run for us this afternoon. 

However - this is currently the only house we are planning to view, and if we miss the house we’ll wait and see what else comes up.

Is it preferable to get the DIP before viewing? Or hold off and only get one if we want to put an offer in? If we get one and don’t want to put an offer in, does that harm our credit files at all if we end up going with a different lender when better deals possibly come to market in the next month. 

ts21

I'm interested in answers to this, but also wondering whether the lender would need to have a suitable (95%) product in order to be able to issue the DIP?

Capri84

 ts21 said:

I'm interested in answers to this, but also wondering whether the lender would need to have a suitable (95%) product in order to be able to issue the DIP?

So there are lenders offering 95% mortgages just now, and we could undoubtably get a DIP from them. 

However - they wouldn’t be our first choice, and I’m sure better products will hit the market over the next couple of weeks. By then though, this house may have gone, in which case for further properties I’d likely want to bin that DIP and get a mortgage with someone else. 

But I wouldn’t want this dip impacting any further mortgage offers. If you see what I mean. 

ts21

Yeah that makes sense, and kind of where I'm at too. I guess it partly depends on whether the DIP is a hard search, and I'm not sure on that?

CLJ2986

As far as I know, most DIP are soft searches and don't leave a footprint on credit files. I had several run before applying for a mortgage as we ended up struggling to get placed with a mainstream lender and have now applied with an adverse credit lender. I don't think it hurts to have a DIP before you start viewing houses as at least you know its affordable but I don't think it's a requirement to view. 

lonibra

Get as many AIPs as you want, it's only soft checks. Fill your boots.

boxer234

What happens if you want to put an offer in but don’t have the deal you want? 

chasingfreedom

lonibra said:

Get as many AIPs as you want, it's only soft checks. Fill your boots.

Not necessarily. I got a DIP from Natwest via a broker and they did a hard search. I wasnt expecting it but hadn't specifically asked that they wouldn't so couldn't really complain.

Capri84

Yep. Can confirm that Coventry did a hard search which is now on file. 

Annoying as the property sold to
someone else before we could even bid on it. Don’t even need that DIP now, will wait to see what other 95% products come to the market over the next few weeks. 

MovingForwards

Capri84 said:

Yep. Can confirm that Coventry did a hard search which is now on file. 

Annoying as the property sold to
someone else before we could even bid on it. Don’t even need that DIP now, will wait to see what other 95% products come to the market over the next few weeks. 

Could still be used if another property pops up within a month.