What is a Decision in Principle (DIP)?
A Decision in Principle is the first stepping stone to getting a mortgage. It’ll give you a good indication of the maximum amount that your mortgage lender could lend you to buy a home.
The advantages of getting a ‘Decision in Principle’ are that you’ll be able to search for properties in the appropriate price bracket and show estate agents and sellers that you’re serious about making an offer and, in theory, can afford to buy the property you are interested in.
Depending on the lender, a DIP can also be called a Mortgage Promise, Mortgage in Principle or an Agreement in Principle (AIP).
As with a full mortgage offer, you can either apply for a DIP through a mortgage adviser or direct with a lender. At M&S Bank we can go through the DIP process during a phone appointment. The call takes around 30-40 mins and you’ll need to provide some personal information about yourself, your income and your outgoings. We will then do some credit checks, collate all the information together and provide you with a decision amount that we might be able to lend to you (based on the information you have provided and subject to a number of conditions).
Having a budget in mind gives you the green light to look for a property. But your DIP certificate could set you apart from other buyers. It gives you the ability to make a more confident offer and reassures the vendors or sellers about accepting your offer.
Why not call us today on 0800 923 1536 to arrange a DIP appointment or for more information? Lines are open 8am-8pm Monday to Friday and 9am-1pm Saturday (excluding bank holidays). Calls may be recorded for security, training and monitoring purposes.
The material contained in this article is intended for information purposes only and not as advice.
You should obtain professional legal or other advice if you are unsure about the effect on you of any matter in this article.
Published: 26 January 2018
Your home may be repossessed if you do not keep up repayments on your mortgage