What Is a Decision in Principle?

A Decision in Principle (DIP) is a statement from a lender confirming how much they would likely lend you based on an initial assessment of your income, outgoings, and credit file. It's not a guaranteed mortgage offer, but it's the first formal step in the mortgage process — and estate agents usually ask to see one before they'll let you make an offer on a property.

You may also hear a DIP called an Agreement in Principle (AIP), Mortgage in Principle (MIP), or Mortgage Promise. They all mean the same thing. Different lenders just use different names.

A DIP typically takes 15-60 minutes to obtain, is usually free, and is valid for 60-90 days depending on the lender. Most DIPs involve a soft credit check that doesn't affect your credit score, though a small number use hard searches — so it's important to know which type you're getting.

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Why You Need a DIP

Estate agents will ask for one

When you find a property you want to buy and make an offer, the estate agent's first question is almost always "do you have a Decision in Principle?" They want to see evidence that you can actually afford the property before passing your offer to the seller.

Without a DIP, your offer is at the back of the queue. Estate agents have no reason to prioritise a buyer who hasn't proven they can afford the property over one who has. In a competitive market, this can mean losing out on properties entirely.

Sellers take you more seriously

Sellers often ask their estate agent about the financial position of potential buyers. A buyer with a DIP is seen as serious and ready to proceed. A buyer without one is viewed as a potential time-waster who might not be able to complete. If two offers come in at the same price, the one with a DIP nearly always wins.

It confirms what you can actually borrow

An affordability check (like ours) shows you what different lenders' calculators suggest you could borrow. A DIP is the next step — one specific lender has run an initial assessment including a check against your credit file and confirmed they would likely lend that amount. It's a stronger signal of what's actually achievable.

It highlights issues early

If there's something on your credit file you didn't know about, the DIP process is where it often gets discovered. Finding out about a forgotten default or an old CCJ at the DIP stage is much better than finding out after you've made an offer and started spending money on surveys and solicitors.

DIP vs Full Mortgage Application

A DIP is an initial indication. A full mortgage application is a detailed assessment that results in a formal mortgage offer.

A DIP covers:

Basic income verification (often just declared, sometimes checked against payslips)
Credit file check
Initial affordability assessment
Confirmation of rough borrowing amount

A full application covers:

Verified income via payslips, P60s, SA302s, bank statements
Full affordability assessment with all commitments
Property valuation
Employment verification
Legal checks
Underwriter review of complex cases

The DIP tells you and the seller that a lender is likely to lend you the amount. The full application, submitted after your offer is accepted, is what actually results in a formal mortgage offer you can use to complete the purchase.

Think of it as a sequence:

Affordability check — shows what different lenders could offer (our tool)
Decision in Principle — one lender confirms they would likely lend that amount
Make an offer on a property — using your DIP as proof of funds
Full mortgage application — submitted after offer is accepted
Mortgage offer — formal confirmation you can use to complete

How to Get a DIP

There are two main routes to getting a DIP: through a mortgage broker, or directly with a lender.

Through a mortgage broker (recommended for most people)

A broker looks at your situation, recommends the lender most likely to accept you at the best rate, and submits the DIP application on your behalf. This is the recommended route in most cases because:

The broker picks the lender most likely to say yes
They know which lenders' criteria match your situation
They avoid lenders that would decline you (avoiding a wasted hard search)
They can advise on the likely outcome before you apply
If you have any complexity (self-employment, adverse credit, variable income, joint application), they know which lenders are flexible on those factors

Getting a DIP through a broker is usually free — they earn their fee from the lender when you take out a mortgage, not from the DIP itself.

Directly with a lender

You can go directly to a bank or building society's website and apply for a DIP there. This is typically faster (some lenders give you a decision in 15 minutes) but has significant disadvantages:

You only see what that one lender would offer
You have no advice on whether they're the best fit
If declined, you have to start again with another lender
Multiple direct DIPs can leave footprints on your credit file

Going direct can make sense if you already know exactly which lender you want (because of a specific product, rate, or criteria match) and you're confident you'll be accepted. For most people, though, going through a broker saves time and avoids unnecessary credit file impact.

What information you'll need

Whether going through a broker or direct, you'll need:

Personal details (name, date of birth, address history for 3 years)
Employment details (employer, salary, time in role, employment type)
Additional income (bonus, overtime, commission, second jobs)
Deposit amount and source
Property price (if known) or estimated price range
Monthly outgoings (credit commitments, childcare, maintenance)
Details of any adverse credit

You don't usually need to upload documents at the DIP stage — most lenders rely on what you declare. Documents are verified at the full application stage.

Does a DIP Affect Your Credit Score?

This is one of the most common questions and the answer depends on which lender you use.

Soft searches (most lenders)

Most lenders now use a soft credit search for DIPs. A soft search is visible to you when you check your own credit report but is not visible to other lenders and does not affect your credit score.

Lenders that typically use soft searches for DIPs include most of the high-street banks and building societies — Nationwide, Halifax, Barclays, HSBC, Santander, NatWest, and many others. This has become the standard approach over the past several years.

Hard searches (some lenders and specialist cases)

A small number of lenders still use a hard credit search at the DIP stage. A hard search is visible to other lenders and can temporarily affect your credit score — typically a 5-20 point drop that recovers within 3-6 months.

One or two hard searches spread over time aren't a significant issue. But multiple hard searches in quick succession (say, three or four in a month) can signal to lenders that you're desperate for credit, which can negatively affect subsequent applications.

How to know which type you're getting

Always ask before you apply. Your broker will know which lenders use soft searches and which use hard searches. If going direct, look for phrases like "this won't affect your credit score" (soft search) or read the terms carefully — if it says "we will carry out a credit check" without specifying soft, assume it could be hard.

Why this matters

If you're planning to apply to multiple lenders or you've already had a recent DIP elsewhere, stick to soft-search lenders where possible. Save any hard-search applications for the lender you're most confident about.

How Long Does a DIP Last?

Most DIPs are valid for 60-90 days depending on the lender. Some are valid for as little as 30 days; a few extend to 120 days.

Why DIPs expire

A DIP is based on a snapshot of your income, credit file, and the lender's criteria at the time of issue. Any of those can change — you might change jobs, your credit file might update, or the lender might change their criteria. The expiry date protects the lender from basing decisions on outdated information.

What happens when a DIP expires

If you haven't had an offer accepted before your DIP expires, you need to get a new one. This is usually straightforward — the broker or lender can refresh it — but it involves another credit check. If your circumstances have changed, the new DIP might show a different borrowing amount.

What happens if your offer is accepted before expiry

Once your offer is accepted and you submit a full mortgage application, the DIP is superseded by the full application. As long as you submit the full application while the DIP is valid, you're fine even if the DIP would technically expire during the underwriting process.

Renewing a DIP

If you're still house-hunting when your DIP is about to expire, let your broker know. They can usually extend it or issue a new one without significant hassle. Just don't let it lapse without action — an estate agent checking your DIP and seeing it's expired won't take your offer as seriously.

Can You Have Multiple DIPs?

Yes, but proceed carefully.

Why you might want multiple

You're comparing offers from different lenders
Your first DIP came in lower than expected and you want to check elsewhere
You want flexibility to choose between lenders
A specific lender's DIP is required for a particular property (rare but happens with new builds)

Why it can cause issues

If all the DIPs involve soft searches, there's no significant problem. Soft searches don't affect your credit score and aren't visible to other lenders.

If multiple DIPs involve hard searches in quick succession, this can:

Temporarily lower your credit score
Signal "credit-seeking behaviour" to lenders, which can trigger additional scrutiny
Make the next lender more cautious

The sensible approach

If you want to compare options, use our affordability tool first to see what every lender would offer without any credit check at all. Then pick the one or two lenders that look most suitable and get a DIP with those — ideally through a broker who can steer you toward soft-search options.

This avoids the scattergun approach of getting four or five DIPs across different lenders.

How a DIP Fits Into the Buying Journey

A DIP sits at a specific point in the overall buying process:

Check Your Affordability → — See what all 60+ lenders could offer. No credit check.
Review your credit file — Make sure there are no surprises. CheckMyFile → (affiliate link)
Speak to a broker — Discuss which lender fits your situation best
Get your DIP — Usually through the broker, with a soft search where possible
Start viewing properties — Armed with your DIP, estate agents will take you seriously
Make an offer — Include your DIP as proof of funds
Offer accepted — Instruct solicitors and submit full mortgage application
Mortgage offer received — Typically 2-6 weeks after application
Exchange and completion — Legal process completes the purchase

Our affordability tool sits at the very start of this journey. We show you what could be possible across all 60+ UK lenders so that when you approach a broker, you already know the lay of the land. Your broker then recommends the best lender for your DIP based on criteria fit, rate, and likelihood of full offer approval.

Common DIP Problems and Solutions

"My DIP came in lower than I expected"

This is usually because:

The lender's affordability model is more conservative than others
Your credit file has issues you weren't aware of
Your declared outgoings reduce affordability more than expected
The lender's stress test is higher than others

The solution is usually to check other lenders — some will offer significantly more for the same income. Our tool shows you the full range across 60+ lenders, which is exactly what helps here.

"I was declined for a DIP"

Being declined is usually because of credit file issues the lender picked up on, or because your situation doesn't fit their specific criteria (self-employment under 2 years, recent job change, certain types of income).

Don't panic and immediately apply to five other lenders — you'll rack up hard searches and potentially decline multiple times. Instead:

Check your credit report to see what the lender likely saw
Speak to a broker who specialises in your situation (adverse credit, self-employed, etc.)
Consider specialist lenders who assess cases differently

A declined high-street DIP doesn't mean no lender will accept you. It just means that particular lender's criteria weren't a fit.

"My DIP expired while I was searching"

Contact your broker or the lender and get a refreshed DIP. This is routine and usually takes 15-30 minutes. Just don't let it lapse without action — if an estate agent checks and sees an expired DIP, your offer position is weakened.

"My circumstances changed since I got my DIP"

If you've had a significant change — new job, pay rise, taken on new debt, change in deposit — the existing DIP may no longer be accurate. Speak to your broker about whether to refresh it now or wait until full application. A significantly higher income or deposit might mean you can borrow more; a new debt might mean you can borrow less.

Frequently Asked Questions

Is a DIP the same as an AIP or a Mortgage in Principle?

Yes. Decision in Principle (DIP), Agreement in Principle (AIP), Mortgage in Principle (MIP), and Mortgage Promise are all names for the same thing. Different lenders use different terminology.

Is a DIP a guarantee I'll get a mortgage?

No. A DIP is an initial indication based on a lender's early assessment. You can still be declined at full application stage if something comes up during verification — most commonly because declared income can't be evidenced, a commitment wasn't declared, or the property valuation is lower than expected.

Do I need a DIP before I start viewing houses?

You don't legally need one, but estate agents will often ask for it before booking viewings on serious properties, and you definitely need one before making an offer. Getting a DIP early puts you in a stronger position throughout the search.

Can I get a DIP with bad credit?

Yes, with specialist lenders. High-street lenders will often decline applications with recent adverse credit, but specialist lenders like Kensington, Pepper, Bluestone, and Precise have products specifically designed for applicants with CCJs, defaults, or other credit issues. A broker experienced in adverse credit is essential here.

How much does a DIP cost?

DIPs are usually free — both directly with lenders and through brokers. Some specialist brokers charge a fee for their service which covers the DIP and subsequent application; typical fees range from £300-£1,500 depending on complexity.

Can I increase the amount on my DIP?

Sometimes. If your income has increased, you can declare more. If you have more deposit, some lenders will lend more. If you've cleared debts, this changes the affordability calculation. Speak to your broker about updating the DIP if your situation has improved.

Does a DIP show how much I'll actually pay for the mortgage?

No. A DIP confirms how much you could borrow. The actual rate and monthly payment are confirmed at full mortgage offer stage. However, your broker can show you indicative rates based on the type of product you're likely to qualify for.

Can I use my DIP with any property?

Usually yes, as long as the property is within the lender's general criteria (not a non-standard construction, not in an area they don't lend, not above/below their price thresholds). Some properties like flats above commercial premises, high-rise flats, or properties with flying freeholds have stricter criteria, and your broker might need to switch lenders for those.

What if my offer is higher than my DIP amount?

Speak to your broker. You may need a new DIP for the higher amount, or you may need to increase your deposit to bridge the gap. Making an offer above your confirmed DIP amount is risky — if the seller accepts, you could find yourself unable to actually complete.

Before You Get a DIP — Check Your Affordability First

A DIP with one lender only tells you what that one lender would offer. Before committing to a DIP, it makes sense to see what the entire market would offer you.

Our free check runs your details against 9 major lenders instantly — no credit check, results in 2 minutes. Upgrade to premium (£9.99) to see all 60+ UK lenders including the specialist lenders mortgage brokers use. Either way, you see the range so you know:

Which lenders are likely to offer you the most
How much the gap is between the best and worst lender (often £50,000+)
Which specialist lenders would consider your situation if mainstream options are limited
How much changing your deposit or clearing debts would increase your offer

Armed with that knowledge, you can approach a broker knowing exactly which lenders to target for your DIP — saving time and avoiding pointless applications to lenders who won't offer enough.

Check Your Affordability — Free →

No credit check. Results in 2 minutes. 60+ lenders compared.

Author & Last Updated

Written by a CeMAP qualified mortgage advisor Last updated: April 2026

Last updated: April 2026