multiple AIPs from same lender - am i worrying over nothing

TXC

Hi all
I've recently read that multiple AIPs can damage your credit score? As house prices have been going up a quickly I've been running a new (higher) AIP for every house I've viewed as its inevitably been outside of what my budget was at that time - ive been increasing in 5 - 10k increments, (my max budget has increased 16% in 2 months) I've got about four from the past month/month and a half in varying increases. I hasten to add that they are all from the same lender and they have all returned as positive but now I'm scared when I come to progress the application they will see a lot of AIPs under current value and think somethings amiss - (i wasnt aware you werent supposed to do this)
lenders site says AIPs dont show on credit score and its a soft check. Am I worrying over nothing?

princeofpounds

Yes - soft checks don't show.

Irishpearce26

Depends on the lender. Virgin Money for example carry out a hard check at DIP/AIP level. 

MaryNB

Most lenders do a soft check for a DIP if you do it directly with them (always check the lender's website first). If it's done via  broker it is often a hard check. 
I did a few direct before I was applied for my mortgage and they left no marks. 

Irishpearce26 said:

Depends on the lender. Virgin Money for example carry out a hard check at DIP/AIP level. 

They shouldn't do. Their website says it's a soft check.  It did a DIP with them last year and it didn't leave a mark. Might be a hard check if done via a broker. 

K_S

TXC said:

Hi all
I've recently read that multiple AIPs can damage your credit score? As house prices have been going up a quickly I've been running a new (higher) AIP for every house I've viewed as its inevitably been outside of what my budget was at that time - ive been increasing in 5 - 10k increments, (my max budget has increased 16% in 2 months) I've got about four from the past month/month and a half in varying increases. I hasten to add that they are all from the same lender and they have all returned as positive but now I'm scared when I come to progress the application they will see a lot of AIPs under current value and think somethings amiss - (i wasnt aware you werent supposed to do this)
lenders site says AIPs dont show on credit score and its a soft check. Am I worrying over nothing?

@TXC As long as the personal information you enter is consistent, multiple soft-footprint AIPs shouldn't do your chances any material harm.

moneysavinghero

Does your AIP not show the maximum they would be willing to lend you?. You shouldn't need to get a new one for each house (unless it's expired). Or has your income been rising a lot?

TXC

Thanks all! @moneysavinghero the questions to arrive at the AIP are geared around house price i.e. I would like to borrow X based on a house value of Y, in hindsight I should have put the max house price i wanted in but I was doing it on case by case

moneysavinghero

TXC said:

Thanks all! @moneysavinghero the questions to arrive at the AIP are geared around house price i.e. I would like to borrow X based on a house value of Y, in hindsight I should have put the max house price i wanted in but I was doing it on case by case

When i did my AIP i did the same, put in the asking price of the house (even though i didn't know whether that would be the actual price i would end up paying or even if that would be the actual house i would end up buying) and i got back the AIP saying yes we will lend you that amount. But then it also went on to say what the maximum they would be willing to lend would be based on the income etc i had inputted. Maybe not all providers do this, maybe some just strictly do a yes/no based on the value of house you asked for.

Irishpearce26

MaryNB said:

Most lenders do a soft check for a DIP if you do it directly with them (always check the lender's website first). If it's done via  broker it is often a hard check. 
I did a few direct before I was applied for my mortgage and they left no marks. 

Irishpearce26 said:

Depends on the lender. Virgin Money for example carry out a hard check at DIP/AIP level. 

They shouldn't do. Their website says it's a soft check.  It did a DIP with them last year and it didn't leave a mark. Might be a hard check if done via a broker. 

Nope hard check done at DIP however i was porting my existing mortgage and borrowing more. It was the only hard check that was done on my application.

Hebblethwaite

I've just had an offer accepted this week and the estate agents I was dealing with (a local and a national EA are both involved) both refused to consider my offer as valid until I had a DIP done using a hard check. They said my existing DIP from L&C was just an affordability calculator and wasn't sufficient to take the house off the market. The lender's website say they don't do a hard check, but I went via a broker and the EAs have accepted it now, so I presume it was a hard check after all. Not ideal, as there's a chance I may have to apply for a mortgage twice as the sale can't complete within the next three months due to the vendor's onward purchase being an unfinished new-build (my broker has suggested we hold off making the full application until closer to the time, but I don't know if the EA/vendor will be okay with that).

NatNat77

Hebblethwaite said:

I've just had an offer accepted this week and the estate agents I was dealing with (a local and a national EA are both involved) both refused to consider my offer as valid until I had a DIP done using a hard check. They said my existing DIP from L&C was just an affordability calculator and wasn't sufficient to take the house off the market. The lender's website say they don't do a hard check, but I went via a broker and the EAs have accepted it now, so I presume it was a hard check after all. Not ideal, as there's a chance I may have to apply for a mortgage twice as the sale can't complete within the next three months due to the vendor's onward purchase being an unfinished new-build (my broker has suggested we hold off making the full application until closer to the time, but I don't know if the EA/vendor will be okay with that).

Well I'd say that they can't have their cake and eat it too. Why should you have to go through it twice when the delays are not your fault?