Mortgage approval in principle expiry date

T

Toms83

Registered User
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Hi FTB here, my mortgage approval in principle is due to expire mid March, I've yet to find a property and with viewings now halted until March 5th earliest its likely I won't find a place before it expires, but on the off chance I do go sale agreed on a property a few days or a week before the expiry date then were would this situation leave me, if the bank is notified that I'm sale agreed and ready to move onto the next stage, would this mean the AIP end date no longer applies, or do I have to actually draw down before the AIP expiry date.

Cheers
 
AIP is just the first step in the process. If you are not likely to find anything soon, you should get your AIP extended. This is a fairly common situation so should be a straight forward request from you. Some banks may seek some additional up to date info such as pay slips to confirm you are still employed and circumstances haven't changed. Others may just extend your AIP on request.

When you finally go sale agreed, you will need a Letter of Loan Offer from the bank for the amount specific to that mortgage/property. This will have it's own expiry date of 6-12 months typically so you are not under pressure to drawdown immediately. It just depends on your situation. If you are buying an existing build, you could close and drawdown quite quickly. If you are buying a new build, it could be several months between signing contracts and closing/drawing down the mortgage.

If you are unsure of how the process works you should talk to your solicitor about the sequence of events. To begin with, just get your AIP extended.
 
Call KBC and ask them what they'd need to extend the AIP. They've all got different criteria at the moment, but so long as your circumstances haven't changed it should be straight forward. They might need updated letter from employer. It's nothing that they won't ask for when you get to drawdown anyhow.
 
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