1. What is a Decision in Principle (DIP)?

A DIP, also called a mortgage in principle or Agreement in Principle (AIP), gives an indication of how much you may be able to borrow. It shows sellers or estate agents that you’re likely able to get a mortgage.

A DIP is for illustrative purposes only and does not guarantee mortgage approval or that a specific product will be available.

2. Do I need a DIP before applying for a mortgage?

It’s recommended. A DIP helps you understand your borrowing potential and gives sellers confidence when you make an offer.

3. How do I get a DIP?

Step 1: Use our Affordability Calculator

• Quick 5-minute check based on your income and outgoings.

• Soft credit check (won’t affect your credit score).

• Provides a clear summary of how much you may be able to borrow.

Step 2: Request your DIP

• After completing the affordability check, you can request your DIP within 30 days.

• If you don’t request it immediately, we will email you a link to complete it.

Step 3: Apply for a mortgage

• Once accepted, you have 30 days to submit a full mortgage application without repeating the DIP.

4. What information do I need for the affordability calculator?

Income:

• Salary, bonuses, overtime, benefits

• Self-employed: last two years’ accounts or Accountant's Certificate and net profit

• Limited companies: dividends and remuneration

• Contractors: annual salary calculated as daily rate × 5 × 48 weeks

Outgoings:

• Loans, credit cards, existing mortgage payments, general spending

You could lose your home if you don’t keep up mortgage repayments.

5. How long is a DIP valid?

A DIP is valid for 30 days, giving you time to submit a full mortgage application once you have an accepted offer on a property.

6. Does a DIP affect my credit score?

No. A DIP involves a soft credit check, which does not leave a footprint. Only a full mortgage application triggers a hard credit search, which may affect your credit record.

7. Is a DIP a guarantee of mortgage approval?

No. A DIP is illustrative only. It indicates how much you may be able to borrow but does not guarantee that a product will be available or that your mortgage application will be approved.

8. Can I challenge an automated affordability decision?

Yes. If the Affordability Calculator indicates your application may not be affordable, you can request a review by a mortgage underwriter.

9. Why do I need to do an affordability calculation before a DIP?

The calculation determines how much you might be able to afford and provides the data needed to generate your DIP.

10. Where can I get more information?

• Affordability Calculator: Helps work out what you may afford

• Credit Scoring Guide [PDF]: Explains our credit assessment process