What is a decision in principle (DIP)?

schedule 1 min read

A decision in principle (DIP) is a quick way to find out how much a lender might be willing to lend to you for a mortgage. It’s sometimes called an agreement in principle (AIP) or a mortgage in principle (MIP).

It’s not a guarantee, but it’s useful to have if you’re starting to look at properties, as it'll give you an idea of what you can borrow. Estate agents will also ask for one before booking viewings or if you want to put in an offer.

Getting a DIP usually involves giving some personal and financial details, things like:

• Your income.
• Your outgoings, including loans, credit cards and general spending.
• Any credit commitments like car loans or school fees.

The lender will carry out a soft credit check, not a hard search, so it won’t affect your credit score.

You can get a DIP with the West Brom over the phone, by booking an appointment in branch or by speaking to a mortgage adviser.

It’s worth noting that the amount offered in a DIP can change once you make a full mortgage application, especially if your circumstances have changed.

Everyone’s situation is different so if you’re ready to get a DIP, get in touch and we can discuss your specific case, rather than just getting a generic answer from a calculator online.