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Getting a Mortgage Decision in Principle

Before applying for a mortgage, you may need a Decision in Principle (DIP). It’s sometimes referred to as an Agreement in Principle (AIP) or mortgage in principle.

A Decision in Principle (DIP) gives an indication of how much you may be able to borrow from us. Many sellers or estate agents ask to see your DIP to show you could get a mortgage. It is for illustrative purposes only and doesn't provide all the information you need to choose a mortgage.

A DIP is not specifically related to a mortgage product within our range. We reserve the right to withdraw our products at any time without notice. Although you may be accepted by our Affordability Calculator and Decision in Principle, we might not have a product available to suit you.

Step one: Mortgage affordability calculator

It only takes five minutes

Our calculator offers you a quick but detailed check of what you might be able to borrow, based on your income and outgoings.

We’ll do a soft credit check

We will carry out a 'soft' credit check. This check won't affect your credit score, now or in the future. You can find more information on our Credit Scoring Guide [PDF].

You’ll have a clearer picture

We will provide you with a clear summary of how much you may be able borrow from us.

What you'll need to provide

During your affordability check, we’ll ask you to provide details of your regular income and outgoings so please have these to hand. These details can include, but may not be limited to:

Your income

  • If you’re employed - annual basic income
  • If you’re self-employed - last two years' net profit (sole trader/partnership co) or last two years' directors remuneration and dividends received (limited company)
  • If you’re a contractor - use your daily rate x 5 x 46 as the annual salary
  • Benefits payments
  • Pension payments
  • Maintenance payments.

All income will need to be verified and comply with our lending policy.

Your outgoings

  • Credit and store card balances
  • Personal loans payments including student loans and car payments
  • Secured loan payments (including other mortgages that will remain)
  • Overdraft usage
  • Maintenance/child support payments
  • Childcare costs
  • Any other commitments
  • If you're applying for a Track Record mortgage, you'll need to know your average rental payment for the last six months you’ve rented.

Step two: Request your Decision in Principle (DIP)

After you get your affordability calculator results, you can request a DIP. You can do this within 30 days of completing your calculation.

If you don’t complete steps one and two at the same time, at the end of your affordability calculation we’ll email you details to allow you to complete your DIP within 30 days. Please make sure you provide your email address and mobile number so you can start where you left off.

If your DIP is accepted, you’ll have 30 days to submit a full mortgage application, without having to repeat the DIP.

Affordability calculator

Work out how much you might be able to afford to pay back on your mortgage based on your income and outgoings.

Launch calculator
Older couple looking at a phone together, in a garden

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

Affordability frequently asked questions

An affordability calculation works out how much you might be able to afford to pay back on your mortgage based on your income and outgoings. It is for illustrative purposes only and doesn't provide all the information you need to choose a mortgage. You can carry it out using an online tool like our affordability calculator. 

The affordability calculator works out how much you might be able to afford to pay back on your mortgage based on your income and outgoings. The information you provide will be used to complete your DIP. 

If you’re not quite ready for a DIP, we'll email you a link once you've completed the online affordability calculator, so you can do it later. This link is available for 30 days. At the end of the 30-day period you will have to restart this process. 

Buying a home is a complicated process with all sorts of different elements involved. You need to have an offer accepted on a property before you can arrange a mortgage. But estate agents often won’t put an offer on a home to the seller unless they can be confident the would-be buyer could afford to buy it.

That’s where a mortgage in principle, or Decision in Principle (DIP), comes in. A DIP is a way of showing your financial circumstances mean a mortgage lender is likely to approve your mortgage application. It gives the seller greater confidence to say yes to an offer. It also gives you more confidence of what home you could afford to make an offer on.

You should know, there are no guarantees that having a DIP means your mortgage application will be approved. A DIP is for illustrative purposes only. It doesn't provide all the information you need to choose a mortgage.

You will have 30 days to complete a full mortgage application, if you have an offer accepted on the property you are buying. To do this, book a mortgage appointment with one of our mortgage advisers, over the phone or via video appointment.

Carrying out a DIP at Skipton will involve a soft credit search which won’t leave a footprint on your record. If you do choose to progress with a full mortgage application, a hard credit search and credit scoring will be carried out. This will leave a footprint on your credit record.

Need help?

Need help?

Chat to us via web chat or call us on 0345 607 9825.