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Has anyone been declined a mortgage offer after getting AIP?

3 replies

boatload · 31/08/2022 19:18

Posting here for traffic.
Hoping to buy a flat, AIP was obtained weeks and weeks ago but still not got a mortgage offer. Worrying that mortgage might not now be forthcoming as bank are asking for lots of info re lease, EWS1 (building has one but remedial works need to be done and no time scale) etc. Is this a possibility does anyone know? Has anyone been refused a mortgage after AIP?

OP posts:
Soontobe60 · 31/08/2022 19:21

My DD was well into the purchase journey as the house was on a private road. Their mortgage advisor was able to get them another AIP / mortgage witching 3 days of the rejection.

Bodgejobvendors · 31/08/2022 19:31

Bear in mind lots of offers are taking a very long time at the moment.

But yes, lots of AIP won’t proceed to an offer. The bank now need to interrogate the specific property you want to borrow against. The same bank will be happy to lend person A £300k for a freehold house with no alterations but not £300k for a leasehold flat with a B2 EWS1 rating/short lease/house with a dodgy loft conversion etc.

TheLaLaLady · 31/08/2022 20:18

An AIP is just an indication of how much you could borrow. This could absolutely change after they’ve fully assessed you and the property.

But you shouldn’t see this as a negative. They are making sure that the mortgage is affordable for you and that the property is ‘good’. That’s for your benefit in the end.

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