Approval in Principle

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eamo_keating

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I would like to know how long Approval in Principle generally lasts when given by a mortgage provider?

My presumption is that AIP given, say, 3 months ago might now have expired and that the banks would not be as willing to lend on the same terms as before.

If anyone knows the average term of AIP, that would be great, thanks.
 
Three months is usually the norm, but in today's unusual mortgage market, some lenders may not hold an AIP that long. Check with the lender who approved you.
 
Remember that the rate offered is usually (always?) subject to change up to the point that the mortgage is actually drawn down. There have been several threads recently where people expressed surprised that the rate originally offered was increased before draw down so be aware that this can happen.
 
as stated above already the lenders seem to be changing on a daily basis so it might even be less then 3 months. i have come across cases that i was advised aip will last 3-6 months but criteria changed and clients deal fell through
 
Hi, We have AIP that lasts for 6 months. We arranged our mortgage through a broker and we asked him that question. As Clubman states, the rate will depend on the rate at time of draw down.
 
AIP's don't last or mean much of anything, if the underlying criteria changes (as it has so much this year) then you are not secure in having an AIP, only a proper loan offer will do and even then there are expiration dates on them and there are lenders who have not honoured loan offers in the past.
 
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