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Mortgage and AIP advice (new builds)

  • 17-01-2023 7:03pm
    #1
    Registered Users Posts: 86 ✭✭


    I want to understand the latest timelines for AIP. BOI has the best rate but I have been hearing conflicting intel about the time to approval. Also, is it common for estate agents to ask for AIP while reserving the house?


    And, at that juncture does it work to prove AIP from a broker instead of the lender? (That's a suggestion I've heard).


    Otherwise perhaps have to go with a lender with higher rates but faster turnaround time!


    Please advise.



Comments

  • Registered Users Posts: 3,171 ✭✭✭howiya


    I think it's pretty common that estate agents look for AIP when reserving a new build.

    Price is known so there's no issue with estate agent knowing how much you're approved for...

    Do AIB still do instant online AIP? Doesn't mean you have to go with them for your mortgage.



  • Registered Users Posts: 4,746 ✭✭✭Padre_Pio


    I went with Haven who took 12 weeks to give me AIP.

    My broker wrote a letter saying that approval was on the way, and this was enough for the EA.

    The EA actually wasn't too bothered. The house was 6 months from completion, so he had plenty of time to find someone else if I couldn't get AIP.



  • Registered Users Posts: 86 ✭✭questions007


    Thanks for your response. I actually happened to call AIB today as their rate seems to be actually cheaper than avant and they claimed to have the process done in 10 days. And, they did give me an AIP that was instant followed by uploading of all docs for verification purposes.


    I wonder if there are 2 types of AIPs. Soft approval + a more final one after the verification?



  • Registered Users Posts: 86 ✭✭questions007


    I see. That's a long time. Maybe that's why the broker was saying it is only avant who'd be the fastest. I spoke to my EA and he was like he definitely wants the AIP by a lender and not by a broker. But feel free to shop around after that the solicitor is going to deal with all of that etc.



  • Registered Users Posts: 4,746 ✭✭✭Padre_Pio


    Haven was useless from start to finish, but they had the lowest interest rate and gave me an exemption.



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  • Registered Users Posts: 86 ✭✭questions007


    That's the dream combination! Hope something good works out in time for me. The AIB people seem to be responsive within the app chat so far. But have only reviewed ONE document.


    Brokers are quiet. No updates.



  • Registered Users Posts: 14 GuinnessSupper


    I was clueless about all this prior to purchasing a new build, so in case you're as clueless as me...

    Any estate agent/developer, to my knowledge, will accept any form of AIP. They will ask for this if you want to bid (second hand home) or put down a booking deposit (new build). A booking deposit will secure your name on the property, however you are still in a position to pull out of the deal. The AIP given at this time does not have to match what you ultimately go with, as in you could have AIP from one lender to bid/pay booking deposit and then go with another lender altogether in the end.

    If you want to actually sign a contract for purchase, typically paying a deposit 10% of the purchase price, you will need to be at a Letter of Offer stage from the lender. When you get your AIP, the lender will ask for multiple documents (payslips, bank statements, salary certificates etc.) which will need to be checked before they formally offer you a mortgage, which is the Letter of Offer. You sign and accept the offer letter, and this allows you to pay the 10% deposit. There will then be a few more steps before the lender will actually release the funds - getting Mortgage protection, Home Insurance etc.



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