Do Approvals in Principle show on a credit check?

ce2016

Registered User
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If I receive AIP from a bank and then later apply for a loan from my credit union for home improvement,will that AIP show up on the credit check that the credit union run?Or is it only actual drawn down loans that show?
 
The AIP won't show but it will show in the ICB if the bank did an enquiry on you prior to issuing the AIP.
 
Are you getting a mortgage? Why would you be applying for the home improvement loan before the house is purchased?

If you go ahead with the credit union loan before applying for the full mortgage then those repayments may affect your borrowing capacity on the mortgage. All depends of course on how much you are borrowing/income etc.
 
Just wondering. If I get AIP, can I ask Bank to include renovation /modernisation of property? So, say I get mortgage approval of 200k and see a house for 150k but house needs 50k work, could I ask them to give me the 50k as a lump to pay for modernisation?
 
Not unless the work is actually going to increase the value of the house, if it's just redecoration as such then you are unlikely to be able to add it on to the mortgage, otherwise they might give you a personal loan for it but 50k would be a bit much without security.

For example, lets say you were buying a house for 150k and after 50k of work the house would be worth 200k then the bank might consider giving you max mortgage on the 200k finished value. However that work would be subject to stage payment drawdowns and you would have to submit estimates etc for it together with the mortgage application so that when the valuation of the property is being done the valuer could confirm that the finished value will be 200k. Wouldn't cover basic stuff like floors/paint and the like, would probably need to be fairly major renovation.
 
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