FTB - estate agent won't accept Bank AIP

Dantheman90 · 9 June 2017 at 7:11PM

Hi

I've viewed a house and I put an offer in. The estate agent asked me to email them over the AIP that I did with my mortgage broker at the bank. I emailed it over and received this reply:

Unfortunately however, we cannot accept the AIP that you provided as it is not had a full credit check at this stage. The vendors are happy to accept your offer at £80,000 but we would need a full credit checked agreement in principle, which we can provide in branch, before we can take the property off the market. This is a request of our vendors.

When would you be free to come in? We do have a couple of appointments available today if you are free at all?

How can an AIP that the broker does be more acceptable than the bank?
No way I'm paying £400 to get a mortgage that I can get myself. I have a meeting tomorrow with the EA and will be asking why it isn't sufficient. If needs be I will tell them where to go and will simply find something else.

Is this the norm with EA'S?

Thanks

SuboJvR · 9 June 2017 at 7:26PM

Some AIPs don't have credit checks done, as you have discovered. This means that although you have told your bank your salary etc, and they have crunched numbers into a calculator, they haven't checked your ability to actually meet loan repayments historically which seemingly the EA/vendor wants.

At some stage, you will certainly be credit checked. But if you let the EA do it, that'll leave a footprint, and then when you apply for your full mortgage, that footprint may show up.

I wonder if the EA is trying it on to get you to use their preferred mortgage broker (and/or get the £400 fee out of you)?

kingstreet · 9 June 2017 at 7:31PM

It would be helpful if you used the lender's name instead of 'the bank.'

You may have an AIP based only on an affordability check, or a soft-search, instead of having a fully-scored DIP from another lender which would be much more reliable.

How do you know 'the bank' is offering you the best deal for your circumstances?

You should resist the EA's attempts to get you to use their (probably) tied and (definitely) more expensive service and choose an independent broker to get you the best deal for you. Brokers account for over 70% of the mortgages transacted in the UK and there is a good reason for this - cost, service and convenience.

ACG · 9 June 2017 at 7:52PM

I am assuming Natwest or Halifax?

A softprint AIP is not really worth the paper it is printed on in my opinion, i do not like agents at the best of times, but on this I can to some extent see their point.

Book a mortgage appointment in with the bank, get your application submitted and then tell the agent that your full application is now in and a ful credit check has been carried out?

Dantheman90 · 9 June 2017 at 7:53PM

sorry the bank I've used is Barclays. I did compare a few and it was between them and nationwide. The EA broker did actually send me 2 quotes from these and Barclays gave a better initial rate than Nationwide, but the broker suggested nationwide would be better as you would get £500 cashback which would cover their fees. I did try to sort the mortgage out on my own without the need for a broker, however as you have suggested it might be easier to use one, so that I don't end up getting another AIP without a full credit check.

Dantheman90 · 9 June 2017 at 8:02PM

Thank you all for your replies. I'll go to the appointment tomorrow and just tell them where I'm at. I have a mortgage appointment with Barclays on Wednesday and will get the ball rolling.

Thank you again for all your advice, made things a lot clearer

Fosterdog · 9 June 2017 at 8:23PM

I'd recommend an independent broker rather than one linked to the EA.

Mine came up with one offer (Santander) that looked best and when we're were discussing other possibilities in case it wouldn't go ahead he mentioned Nationwide came in second cheapest and usually have good service, I said we both have accounts with them and that was the deciding factor because theirs was fee free, no valuation costs and the £500 cash back which actually turned into £750 cash back as we were both current account and savings account holders so qualified for an extra bonus. Our broker was also fee free so rather than it costing us money we made £750 from taking the mortgage which covered all but £20 of our solicitors fees from the purchase.

note3 · 9 June 2017 at 8:36PM

We put offer in and received same response from EA. I delayed appointment with their advisor by a few days then day before I told the agents advisor that I was happy to come in but had now submitted application to bank. He said not to bother in that case. Later on the day I was due to see him I dealt with our broker and submitted our application.

I strongly suspect it was just a way for them to try and get business as their reasoning was that we must be officially qualified by their broker for offer to be accepted yet he suddenly didn't need to do that when I said I'd applied for a mortgage (and he only had my word at that stage)

Lucky_Duck_2 · 9 June 2017 at 9:30PM

Based on some the threads here I wouldn't be at all surprised if the vendors had made no such request

MK__2 · 12 June 2017 at 12:13PM

We've had the same tactic from an EA here. It's BS and they are trying to get you to sign up with their in-house / partner financial services. No way did the vendor require a hard credit check - more like they recommended to their vendor that it should be done to make sure you are 100% proceedable, and they went along with it. They are just trying to put you under pressure. Unfortunately they've got you over a barrel.

I'd go with the advice above - find an independent local broker (by personal recommendation, not the EA's choice) who you can sit down with, work through all your options, and find the best mortgage for you, rather than being forced to go with your bank just so you can get a hard credit check up front. If the broker is worth their salt, they'll know what to say to the EA.

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FTB - estate agent won't accept Bank AIP

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