Mortgage Decision In Principle
Stepping onto the property ladder and into the world of mortgages? It can feel complicated. But what if you could get a clear idea of your borrowing power before you even start looking for homes? That's where a Decision in Principle (DIP) comes in.
What is a Decision in Principle?
A Mortgage in Principle, also known as an Agreement in Principle (AIP) or Decision in Principle (DIP), is a document that gives you an indication of how much you could borrow to buy a home. It’s not a formal mortgage offer, but it’s a crucial first step that shows sellers and estate agents you're a serious buyer. You can get one online for free, in just a few simple steps.
Know your budget: Understand what you can realistically afford, so you can search for properties within your home-buying budget.
Get your house hunt off to a good start: Show sellers and their estate agents you're ready to make a serious offer, as a lender has checked what you can afford.
Speed up the process: Having an DIP helps you to make an offer quickly when you find your dream home.
How long does an DIP last?
A Mojo Mortgages Decision In Principle is valid for 90 days, which should give you plenty of time to find a property and make an offer. If your Agreement in Principle expires, don't worry. Presuming your circumstances haven’t changed, it shouldn’t be a problem for you to get another one.
John Fraser-Tucker says: “One of the great things about a Mojo Decision in Principle is that our are lender-neutral. This means you can find out your maximum borrowing potential across a wider range of mortgage providers, rather than simply getting an idea of how much you could borrow from just one lender. This saves you time and hassle manually researching and submitting multiple DIP applications. Start your property search sooner, and with more confidence.”
John Fraser-Tucker, Head of Mortgages
How to get a Decision in Principle with Mojo
It’s simple and straightforward to get a Decision In Principle with us. We do the heavy lifting so you can focus on the exciting part - finding your new home.
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Tell us a bit about you
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Your personal identification - name, address, date of birth and personal ID such as passport or driving license
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Income details - past 3 months payslips for employees, 2-3 years of tax calculations for self-employed
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Address details - full address history over the last 3 years, ideally with evidence such as a utility bill
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Your outgoings - usually bank statements, ideally from within the last 3-6 months. A full list of debt repayments, including buy-now-pay-later commitments such as Klarna, will usually be required
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Credit report - it's a good idea to be aware of your credit rating and run a recent free credit report in advance, although your broker or lender will usually run a soft credit check at Decision In Principle stage
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Details on your current deposit - this will usually come at application stage, but gives a good early indicator on the size of mortgage you can realistically apply for
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Then, book an initial appointment to go through your options with one of our mortgage experts.
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Get your free Decision in Principle
We’ll check your eligibility and borrowing potential across a wide range of lenders to provide an expert-verified Decision In Principle. We use a soft credit search, too, so there’s no impact on your credit score.
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Find your perfect property and the right mortgage for you
Once you’ve had an offer accepted on your dream home, tell us all about it! We’ll compare hundreds of mortgage products across over 60 lenders to find the best fit for your circumstances.
Difference between Decision In Principle and mortgage offer
It’s easy to get these two mixed up, but an DIP is not the same as a mortgage offer.
Decision in Principle (AIP) | Mortgage Offer | |
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What is it? | An estimate of how much you could borrow. | A formal agreement confirming the amount a lender is willing to lend you |
How is the decision made? | Based on initial, basic financial information. | Based on a full mortgage application and more extensive checks, including a property valuation. |
Hard or soft credit check? | Usually just involves a soft credit check. | Involves a hard credit check. |
Mortgage offer guaranteed? | Does not guarantee a mortgage offer. | Confirms the lender is happy to offer you the money you need. |
How reliable is a Decision in Principle?
A Decision in Principle (DIP) offers a reliable initial estimate of your borrowing limit, crucial for demonstrating seriousness to sellers. However, it is not a guarantee - its final reliability depends entirely on a stable financial situation, a successful hard credit check, and the satisfactory valuation of the property during the formal, detailed underwriting process.
Lender Decision In Principle comparison
Each lender has their own criteria when assessing mortgage applicants, so the amount you’ll be able to borrow often varies between providers. This means any mortgage agreement in principle you get directly from a bank or building society only tells you how much you might be able to borrow from that specific lender.
If you want to understand how much you could borrow from across the market, you’ll need to compare DIPs from across multiple lenders or work with a broker to do the hard work for you.
Lender | How long does it take to apply for a DIP? | How to get a DIP | How long does the DIP last? | Soft search (no impact on your credit score)? |
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Barclays mortgage in principle | 10 minutes | Apply online, through the Barclays app or by speaking to a Barclays mortgage advisor on the phone | 90 days | Yes |
Halifax mortgage in principle | 10 minutes | Apply online or over the phone | 90 days | Yes |
HSBC mortgage in principle | 5 minutes | Apply online or over the phone | For as long as your circumstances and HSBC’s lending criteria stays the same | Yes |
Lloyds mortgage in principle | 10 minutes | Apply online, over the phone or in branch | 90 days | Yes |
Nationwide mortgage in principle | 20 minutes | Apply online or speak to their customer service line to apply over the phone | 90 days | Yes |
Natwest mortgage in principle | Less than 10 minutes | Apply online, over the phone or in a branch | Three months | Yes |
This information has been obtained from each lender's website, accurate as of 4th June 2025
Does a Decision in Principle affect my credit score?
Usually getting a DIP won't affect your credit score, as almost all lenders and mortgage brokers (including us here at Mojo) use a soft credit check to assess your creditworthiness. This allows the lender to look at your credit history, but doesn't leave a mark on your file.
Most lenders will only perform a hard credit check when you go through to the full application stage, though it's always best to check with the provider first before applying for a DIP.
Not ready for a Decision In Principle?
The first step is to know the numbers. Get to know what you can afford with our mortgage calculator before taking the next step with a decision in principle.
What our customers say
"Really prompt responses, for example, when an updated mortgage in principle was needed this was done within minutes."
Laura
8 April 2025
Related articles
Read some of our highlighted agreement in principle articles below.
Last reviewed by John Fraser-Tucker on 2nd March 2026.