Hi Allys,

As has been posted before, the agreement in principle means that that have provisonally agreed to provide you a mortgage, based on the assumption that you will meet all of their lending conditions, and on they will perform suitable credit checks and references upon your submission of a mortgage application which will contain more information than they have at the AIP stage.

This application typically costs you an application fee, and then a valuation fee.

Unless the mortgage company advises you incorrectly these fees are not refundable if you are not sucessful in your application.

Are the AIP's worth the paper they are written on? No probably not.

They are a useful tool for getting to view new properties to buy with an indication of the possible lending and should stop other advisors attached to agents pushing to arrrange a mortgage for you.

If you want to find out more a search on any lender's website should explain what an AIP covers.

A quick search for the abbey AIP thread will also give you a useful link.

HTH

Sparky.

allys

AIP (agreed in principle) means only in principle, subject to mortgage application process. If you do a google search for Abbey AIP there is a PDF document under abbeyforintermediaries.com. This explains the process and may answer any questions that you may have. If not speak to your mortgage advisor.

Well done on the overdraft front. Must be a relief !!

Huckster

Thanks for the info huckster

I have cleared my overdraft and only have my unsecured loan to my name and never missed a payment and plus otherhalf has a excellent credit rating.

so what you are saying is an A.I.P is not a binding as such? then why do they have them?

allys

Read the Financial Times article on Abbey AIP. Link http://www.ftadviser.com/FTAdviser/Advisers/Industry/News/article/20090403/be12ce88-2050-11de-bbed-00144f2af8e8/Adviser-angry-at-Abbey-over-AIP-rejections-for-wealthy-clients.jsp

Also do a google search for Abbey AIP. There are some other documents online about the Abbey AIP process.

I would think that they will do more checks once they receive your actual mortgage application. You should be upfront with mortgage advisor about any debt issues to avoid any potential embarrasment later. Being able to repay the mortgage will obviously be a key consideration.

huckster

Just been giving our mortgage A.I.P from abbey (agreed in princable) do any people on these forms know if they do credit checks first to see if you are capable of paying the mortgage in the first place, just wanting to know if this is guaranteed and so don't have egg on ma face if I bid for a house at the agreed mortgage.