This week the comments come in response to the article: Brokers argue that AIPs are now ‘worthless’ ‒ analysis.
Aklyas236 said: “Agreements in Principle (AIP) have been a waste of time for a long time now. We have been advising clients not to bother and instead carry out a robust Fact Find and be in a position to submit an AIP only at the point of it being requested by the estate agent in order to make an offer.
“This way, there is minimal time to application submission post AIP – and more chance of a successful outcome for the client.”
“Waste of space”
Mortgage Solutions reader MJ added: “Totally agree, Decisions in Principle (DIP) have been a complete waste of space for years, for a whole multitude of reasons; not just affordability, but rates, criteria, speed to offer, property type, change to new build from second hand and vice versa. Loan to value might change; and so, it goes on.
“I have been educating clients on this for years and will not do a DIP until the time of client putting in an offer. Normally, as a rule if the client is buying through a smaller agent, then there are not many problems at all, as I will speak to them and say that if my client’s offer is going to be accepted then I will be fast out of the starting stalls and get DIP and full application done at the same time.”
MJ continued: “However, if a large chain is used then that’s a different ball game altogether. That is where the pressure usually starts for the poor client. So, if a property is for sale with two agents then the standard advice is to use the smallest agent to avoid the issue of a DIP done far too early.”
