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 Mortgage in Principle (MIP) or Decision in Principle (DIP) comes in.
Takes 10 minutes to complete online
Completely free
Won't affect your credit score
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 | |
|---|---|---|
What is it? | An estimate of how much you could borrow. | A formal agreement confirming the amount a lender is willing to lend you. |
When do I need one? | When you start hunting for homes. | After you make an offer on a property, it’s been accepted, and you’ve submitted a full mortgage application. |
Why do I need to get one? | It’s handy to know your budget ahead of viewing homes, and it shows sellers you’re a serious buyer. | It’s needed to secure the funds to legally complete on your home sale. |
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. |
Affects credit score? | If it’s a soft credit check, it usually won’t impact your score. | A hard credit check is recorded on your credit file. |
Mortgage offer guaranteed? | Does not guarantee a mortgage offer. | Confirms the lender is happy to offer you the money you need. |
What happens after I get one? | You know your home-buying budget. | You can start the formal mortgage application process, if your offer is accepted. |
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.
Decision in Principle FAQs
Yes, it's possible, although this doesn’t happen often. A lender might decline your full application if your circumstances change, for example, or if there are issues with the property you want to buy.
We offer extra tips in our guide on things that can go wrong with a MIP and how to avoid them.
An AIP doesn’t guarantee that you’ll get a mortgage, but it can give you a realistic idea of what you can afford to borrow. This can save you a lot of wasted effort and heartache when you’re looking for a home, as you can immediately rule out those you won’t be able to fund.
While it's not a legal requirement, most estate agents will ask to see an Agreement in Principle before you can make an offer (some won’t even allow you to view the property without one). That’s because having a AIP shows you're a credible, financially-ready buyer.
You can begin looking for your dream home! Once you find one that you love and have an offer accepted, you can begin the formal mortgage application process. Just get back in touch with our team and we’ll help find the right mortgage deal for you.
Generally, as soon as you start your home-hunting journey. If you’re viewing properties with the intention to buy, it’s time to get an agreement in principle. It provides an estate agent, or seller, with confidence that you may be in a financial position to purchase a property.
Based on your information, it gives you a realistic price range, which can make the process of hunting for your next home much easier.
And, if you’re about to remortgage, you’ll need an agreement in principle to switch your mortgage to a new lender.
There’s no difference between Agreement in Principle (AIP), Decision in Principle (DIP), and a Mortgage in Principle (MIP). These are industry terms that are used interchangeably for the same thing: an indicator of how much you might be able to borrow for a mortgage or remortgage.
You may see that brokers and lenders prefer to stick with one term – that’s just their preference.
Yes, you can get more than one from different lenders. It may also give you more options when it comes to applying for a mortgage.
An agreement in principle is no guarantee of the mortgage, and so it can be declined for a variety of reasons. The lender has to be satisfied with your financial situation and the property. These can happen, and if you’ve applied for an agreement in principle yourself, it may be an error with the processing of paperwork.
If your mortgage has been declined for whatever reason, get in touch with an expert mortgage advisor who may be able to do a full assessment, know which lender to use and why – so your mortgage stands a better chance of being approved.
Last reviewed by John Fraser-Tucker on 2nd March 2026.