Agreement in principle.

[Whatagirltodo123]

We went to my partners bank just under 2 weeks ago for a AIP. They done a credit check and was told what they was willing to lend us. So we put all our eggs into one basket and put an offer on a house to the max we was told we could lend. Offer was agreed. We now are going through with the mortgage, but was wondering how likely we will be accepted. First time buyer and very nervous as I have bad credit history but my partner has amazing credit score plus its with his bank so they can see the inns and out of his.

Placemarking bc we have had an offer accepted on a place that is a substantial jump up the ladder for us. We have an AIP but our vendor is v nervous and is not taking the property off the market and is still showing people round. The reason is bc she has has three people get to the point we are in and then get refused the mortgage. So my answer is I have no idea.

We've put a 1% deposit down to take it off the market. But if we dont get agreed on the mortgage We have lost that 1% so im proper nervous

I asked the mortgage advisor when I was doing my application if it was common for people to get turned down after getting an AIP, and he said as long as you’ve been completely honest about all your debt etc and circumstances don’t change it’s really quite unlikely. Not unheard of but not common.

Well, it happened to us and we both have excellent credit histories. Sorry - not what you want to hear. However another lender agreed it.

Is his a new build or not in England?? I dont think it is usual to have to pay a non-refundable deposit to take a house off the market. And also I'm not sure they can legall keep your deposit just because. I think they have to be able to show that it will cover a genuine financial loss to the business.

I got refused a mortgage and had AIP in place. I had a 50% deposit and no debt with large salary. They didn't like I was working overseas at the time, but we're aware of this when I made my application. Three months later someone from the same bank called me asking if I was interested in a mortgage....

Its an old build. We thought it was a bit weird to ask for the 1% deposit but apparently because the market is so tight and loads of applicants are trying to get the same house it's a safety net. But if we back down then we loose it.

Im not sure if because its with my partners bank and he's told them that he will be paying for it not me but its in both our names that made a difference. My application for it compared to his is different.

Dont pay the deposit. They are tying it on. You need solicitors' advice on that sort of thing.

Does your 1% deposit offer you protection?for example another - higher - offer resulting in you being gazumped?

Yeah to stop anyone to take it from us.

Recent first time buyer here and after having a mortgage in principle, the amount I could borrow changed 3 times until I got an actual mortgage offer. Ended up dropping by 15k! My mortgage in principle was with L&C - next time I think I'd get one direct from a lender or at least with a smaller broker.

I'm interested to hear peoples experiences too. We're selling up and have a good chunk of equity to put down. Can I ask what salary multiples people are getting? I know it's about affordability but just roughly- were your AIPs 3/4/5 times salary?.
Last time we moved we didn't sell up first and kept a property to rent. This time we're selling and buying and I'm finding it quite stressful already.

I Can't believe how stressful it is. All i want is to bw told yes this is what youll have dont worry you can have the mortgage. No stress needed.

@aquamarine1 mine is just under 4.5x my salary

Thanks @ASauvignonADay - we're looking for 4x so glad to hear it's doable. Never moving again etc

I think my partner said it's 4.5x for us as it's a joint one with a dependant.