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Get an AIP first or Reserve first?

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WLITC
WLITC Posts: 1,029 Forumite
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in House buying, renting & selling
So I am looking to reserve a 2-bed apartment on a Shared Ownership scheme. Its a £500 depoist, which is't refundable, unless they cancel it at their end. What's the norm here? Should I get an AIP first or just reserve it to secure it?

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  • [Deleted User]
    [Deleted User] Posts: 35,242 Forumite
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    WLITC wrote: »
    So I am looking to reserve a 2-bed apartment on a Shared Ownership scheme.

    So how confident are you that you'll get a mortgage?
  • WLITC
    WLITC Posts: 1,029 Forumite
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    Deleted_User wrote: »
    So how confident are you that you'll get a mortgage?
    I think its fairly good. I have a good job and a clean credit file, although I was bankrupt back in 2010 so thats always my worry, but a mortgage broker I spoke to a few weeks ago didn't seem to think it would be an issue. I guess its a case of whether I want to chance it which I kinda knew, but the Share to buy website threw me a little as it said contact us about a mortgage AIP if "you have been offered a property and need to find a mortgage" which made me think I should get offered the property by the housing association first, but then on reading the site just now I realised it to apply for an AIP if you are "looking at specific properties and may need a mortgage soonproperties and may need a mortgage soon". I guess my worry is if it takes several days to get an AIP then I may lose out as there are only a few apartments left.
  • [Deleted User]
    [Deleted User] Posts: 35,242 Forumite
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    That's the risk you need to weigh up.
  • Pixie5740
    Pixie5740 Posts: 14,515 Forumite
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    An AIP won't cost you anything whereas reserving the leasehold will cost you £500. I know which I would do first.
  • Pixie5740
    Pixie5740 Posts: 14,515 Forumite
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    I thought you'd already decided to get an AIP as soon as possible...

    https://forums.moneysavingexpert.com/showthread.php?t=5885048
  • ~shoozy~
    ~shoozy~ Posts: 77 Forumite
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    When I was speaking to builders they would not reserve anything without an AIP. Yours may be different but none of the 4 I spoke to would allow me to reserve without seeing the AIP first.
  • kingstreet
    kingstreet Posts: 38,784 Forumite
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    I agree.

    Most won't take a reservation without you obtaining an agreement in principle first.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
  • WLITC
    WLITC Posts: 1,029 Forumite
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    Thanks all, I am new to all this and a little green about what to do and how to proceed. Sounds like I should definately get the AIP first and as some suggest, they possibly won't take reservation without it. I have emailed to broker I spoke to a few weeks back and I am hoping to speak to her today.
  • kingstreet
    kingstreet Posts: 38,784 Forumite
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    Make sure the broker knows they need to do the Government's shared ownership calculator as well. This determines the share percentage you will need/to be able to purchase.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
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