AIP v Final Offer

BorderTed

Hello,

Looking for some advice please. My husband and I engaged a broker and gained an AIP for £243k in December 2024 and were advised that when our credit files updated (as we had cleared a lot of debt), this would likely increase. We reapplied Mid Jan and our broker advised this had increased to £255k. 

We found a property made an offer and then formally applied with the lender. We have now been advised that it’s with the underwriter and currently they are only willing to lend £240k, but have asked for further information.

Without going into lots of detail, my husband and I are concerned about our current broker and the accuracy of the detail he provided to the lender when obtaining the AIP. We provided him with our full ‘check my file’ credit reports, banks statements, etc, before even obtaining the AIP. On a few occasions the accuracy of some of the details he has provided to us  has been demonstrably  incorrect. 

My question is how common is this reduction in offer from AIP to offer common? We have provided our complete financial history and information and if anything our credit files in terms of both score and cleared credit accounts have only grown. We are concerned that this reduction of borrowing amount maybe due to inaccurate information supplied by the broker.

Thanks 

ACG

It depends on the lender. 

Although you have cleared the debt recently and you can see it has updated, it may not have updated on the reports the lender is running. This can mean they reduce the loan. With a discussion or evidence it may be increased again. 

However it could also be reduced if the broker has made a mistake. 
Believe it or not, it could also be reduced because the underwriter has made a mistake. But you can normally get that reinstated to the original amount. 

BorderTed

Thank you for your response, from what I can see it’s updated across Equifax, Experian and Transunion. 

Our broker contacted us on Wednesday to ask for further information, which was provided. When we contacted him again today he asked for additional information (of which this had been supplied several times before) and stated that it was still at £240k. I am just concerned that this is not going to return to the £255k.

ACG

I dont understand this in detail, but I believe when lenders do credit checks, they can pay for reports that are up to date, 30, 60 or 90 days out of date - the more out of date, the cheaper they are. 

So in theory the reports could be out of date. 

I know its a stressful time, but its one of those things you cant do anything about. Try and enjoy the weekend and deal with it on monday. It might be that you need to try a different lender. 

BikingBud

BorderTed said:

Hello,

Looking for some advice please. My husband and I engaged a broker and gained an AIP for £243k in December 2024 and were advised that when our credit files updated (as we had cleared a lot of debt), this would likely increase. We reapplied Mid Jan and our broker advised this had increased to £255k. 

We found a property made an offer and then formally applied with the lender. We have now been advised that it’s with the underwriter and currently they are only willing to lend £240k, but have asked for further information.

Without going into lots of detail, my husband and I are concerned about our current broker and the accuracy of the detail he provided to the lender when obtaining the AIP. We provided him with our full ‘check my file’ credit reports, banks statements, etc, before even obtaining the AIP. On a few occasions the accuracy of some of the details he has provided to us  has been demonstrably  incorrect. 

My question is how common is this reduction in offer from AIP to offer common? We have provided our complete financial history and information and if anything our credit files in terms of both score and cleared credit accounts have only grown. We are concerned that this reduction of borrowing amount maybe due to inaccurate information supplied by the broker.

Thanks 

Is that against that particular property or they are constraining you across all property? 

amnblog

There is no sensible way to identify exactly what is going on here.

1. The Lenders scoring process will be opaque so the cause of an affordability cap is not always clear
2. A lower score by the Lender can cap maximum borrowing, making debts repaid irrelevant
3. The £255K figure may have been based on a pre application calculation, not a full score
4. Maximum borrowing can change from AIP to full application as Lenders will typically expand their credit file scores at full application stage.
5. Other Lenders may take a more generous view but we have no way of knowing as we do not know your case

BorderTed

Hi Biking Bud, it’s against a particular property, and the feedback from the mortgage lender was that their valuation survey came back as approved for the selling price. 

Unfortunately, we have uncovered that our broker has made an errors with the information he submitted. 

Thank you taking an interest and replying though.

BorderTed

Hi amnblog,

Thanks for taking time to reply. We have uncovered that our broker supplied information that had several errors.